After months of bear market, investors are expecting a new situation. And this change has a name: the bull run “. To achieve this, Rostin Behnam, chairman of the CFTC, suggests accelerating the regulation of bitcoin and cryptocurrencies.
CFTC bets on bitcoin regulation
According to the head of the CFTC, the rise in the price of bitcoin is imminent, provided that the crypto space is regulated.
” Growth could occur if we have a well-regulated space. […] Bitcoin could double in price if there is a CFTC-regulated market “, he had breathed.
” The institutions [crypto] non-banks thrive on regulation, they thrive on regulatory certainty, they thrive on a level playing field…because they are the smartest, fastest and most resourced. […] And they may say otherwise, they may bicker over what kind of regulation – but what they love most is regulation because they are the smartest, fastest and most resourced. With these attributes, they can beat all others in the market. »
Behnam seems to be a stickler for bitcoin regulation. Which turns out to be quite normal since he has always advocated for the establishment of a certain degree of regulatory clarity in the world of cryptocurrencies.
It should also be noted that recently, several international actors have called for this ecosystem to be regulated. This is particularly the case of Mairead McGuines, a member of the European Commission, who asked for international coordination favorable to ” fundamental aspects of the financial system “.
Financial institutions in favor of clear regulations
Clear regulations will motivate financial institutions to invest in cryptocurrencies. The CFTC is aware of this.
Is this the reason that prompted the Senate Agriculture Committee to support the CFTC to become the first regulator of the cryptocurrency industry? In any case, Behnam backed the bill that would allow it to levy fees on regulated entities. In his view, this device would help any regulator to eliminate the “ unscrupulous authors “.
” We are [actuellement] aided by Congress, and that has put us in a position where we feel like we’re constantly on the edge of how much money we’re going to get. We still feel the wounds and scars of about five or six years of flat funding “, he specified.
The CFTC, which is set to become the primary regulator of bitcoin in the United States, sees a brighter future after crypto regulations are in place. If this step is taken, institutions will flock to BTC, and as a result its price will increase. However, many investors are just waiting for the bull run. This is the sine qua non, according to the CFTC. Let’s hope this prediction is correct.
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