US regulatory agency states: Cryptocurrency sector will continue to expand globally

U.S. Commodity Futures Trading Commission (CFTC) member Brian Quintenz recently stated in an interview with CNBC that the cryptocurrency industry is flourishing and its ecosystem will continue to grow larger.

Quintenz discussed the Commodity Futures Trading Commission (CFTC) adapting to the ever-evolving market, shedding its old-fashioned image. He stated:

Traditionally, we have been a principles-based regulator, and we are trying to change the historical perception that we are a stodgy regulator because those historical rules were set at some point in time for the market conditions at that time. But rules are dead; they need to evolve, they need to be updated.

Therefore, if we can come up with regulatory rules that are applicable to products, whether it's corn, wheat, oil, traditional financial products, or even new innovative crypto products, that provides a mechanism for them to have protection and let the market determine whether these products have commercial or investment value.

Quintenz believes that the CFTC's role is simply to ensure appropriate regulatory rules for commodities and that being free from market manipulation is sufficient.

Quintenz also mentioned that the regulatory rules set by the CFTC will be based on the institution's understanding of Bitcoin. He stated:

We have seen this evolution where the market initially expanded from cash-settled Bitcoin futures contracts, and we are looking at and studying what constitutes the settlement index? Is it susceptible to manipulation?

Quintenz brought up Bakkt, noting that the institution's physically-settled Bitcoin futures officially launched today. Quintenz stated:

When you have physically-settled futures trading, that means that intermediaries have to hold those bitcoins as collateral, so we need to come up with the best regulatory solution for custody of crypto assets, and we have done a lot of work on that.

Quintenz believes that the growth of the crypto industry in the past few years has been remarkable, and the future of cryptocurrencies is limitless. He pointed out:

We have seen a tremendous expansion, and I think the crypto industry is going to get bigger. As more mature entities get into the crypto space, whether it's centralized or decentralized, we are going to see the attractiveness of all crypto assets globally continue to rise.

According to reports, Quintenz concluded the interview by stating that as regulators, the crypto space will bring new challenges to the CFTC, and the CFTC commissioners are ready to tackle these regulatory issues.

Further Reading

• Bitwise makes three-point argument to SEC, stating, "The market is ready for a Bitcoin ETF."
• North Korea reportedly planning to create its own cryptocurrency to circumvent the U.S.-dominated global financial system.

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