The cryptocurrency industry has seen exponential growth since the inception of Bitcoin in the late 2010s.
Every year as the industry grows larger and more cryptos enter the limelight for their properties and advantages, a struggle brews among the financial regulatory institutions in the United States regarding who controls and regulates this booming niche.
These regulatory institutions do so for a chance to be the financial "watchdogs" that ensure regulatory compliance of these crypto networks and their cryptocurrencies.
One of the institutions at the forefront of this struggle is the Commodity Futures Trading Commission, or CFTC for short.
Lately, during a fireside chat at the New York University school of law, Rostin Behnam, chairman of the CFTC, gave reasons why his institution should be the one in charge of reinforcing these regulations.
According to Behnam, having his agency be in charge of regulating these cryptocurrencies may be good for the industry. He states that bitcoin may even double in price if the CFTC were in charge of regulating the crypto market.
Behnam further explains that a regulatory framework like this may give institutional investors more confidence and motivation to invest if they know that the crypto market is regulated.
As a side note, it is also important to mention that Behnam has expressed a few opinions in the past, stating that it would be good if cryptos like Bitcoin and Ethereum became integral parts of the mainstream financial portfolio of the United States in the future.
Also, in the last quarter of this year, the United States Senate Committee on Agriculture proposed a bill suggesting that the CFTC acquires regulatory control over the spot markets of newly defined "digital commodities."
Right after that, Behnam expressed expectations of this bill being expanded to feature the CFTC taking control of crypto regulation in the future. According to him, the CFTC is "ready for this possibility."
Meanwhile, the CFTC isn't the only financial institution vying for these positions. The SEC has also expressed interest in being the main regulatory body for cryptocurrencies by trying to "assert" itself. Over time, the SEC has been labeled by some as being a bully that tries to "regulate through enforcement."
The reputation of the Securities and Exchange Commission has taken a hit over the years because of its incessant lawsuits against crypto-related firms like Ripple Labs.
However, the government has not decided which financial institution gets the right to regulate crypto
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)