Gary Gensler, the former head of the Commodity Futures Trading Commission (CFTC), revealed that regulations should be put in place in order for the crypto market to grow. He added that regulations will also ensure that consumers are protected.
The ex-CFTC chairman discussed his views at the MIT’s Business of Blockchain event held on May 2.
Legal Protection Necessary
Gensler talked about his perspective on blockchain-backed products and services as well as bitcoin exchange-traded funds (ETFs). He claimed that for the cryptocurrency market to grow and prosper, investors have to be assured that there’s legal protection in place for both investors and consumers in the event of loss of private keys or instances of market manipulation.
Gensler was also asked about his views on the impact of ETF is approved. He shared that the Securities and Exchange Commission (SEC) is working to ensure that if there is an ETF, then the markets for those funds and the ethereum or bitcoin it’s referencing won’t be vulnerable to manipulation.
He added that it’s vital to ensure that markets are overseen properly and allowed to mature sufficiently. It’s also critical that they keep the odds of manipulation small.
The former CFTC head also gave arguments favoring the extension of countrywide level regulation during the Bitcoin Expo. He said regulations should cover a wider spectrum of cryptocurrency trading, address the present discrepancies in regulation and enforcement across the states, and coordinate against money laundering.
Meanwhile, SEC Commissioner Hester M. Peirce pushed for lighter regulations to be implemented whenever possible. However, she did agree that security offerings have to comply with SEC requirements.