According to Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), CFTC regulation of the market might spell substantial advantages for the cryptocurrency sector; for instance, Bitcoin might just note a significant increase in value. During a fireside talk at NYU School of Law, Behnam was heard saying: “Growth might occur if we have a well-regulated space…Bitcoin might double in price if there’s a CFTC-regulated market.”
Behnam has regularly emphasized the necessity for regulatory certainty (and now, CFTC iegulation) in the crypto markets, which a majority of crypto traders have deemed lacking so far. A well-regulated market would lead all participants to operate efficiently, Behnam opines.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have been at odds over the position of chief regulator for the cryptocurrency industry for years. Both agencies have been hesitant in issuing any sort of formal guidance for crypto companies, however, vying to establish a regulatory structure through enforcement acts instead.
Behnam further suggested that a precise and straightforward regulatory framework might open the door for investment firms to enter the industry: “Non-bank [crypto] institutions thrive on regulation… What they love most is regulation because they are the smartest, the fastest and the most well-resourced. With those attributes, they can beat everyone else in the market.”