CFTC Takes Do-No-Harm Approach at Crypto Regulation
February 7, 2018
As the U.S. Commodity Futures Trading Commission’s chairman claimed, there is growing need in more balanced “do-no-harm”-approach when regulating cryptocurrencies.
Christopher Giancarlo noted in a written testimony submitted to the Senate Banking Committee that in this new digital era for financial markets cryptocurrency has caused a paradigm shift of how we consider payments and financial processes.
“'Do no harm' was unquestionably the right approach to development of the Internet. Similarly, I believe that 'do no harm' is the right overarching approach for distributed ledger technology. ... With the proper balance of sound policy, regulatory oversight and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity”, Giancarlo added.
This does not mean CFTC is going to just sit back and do nothing. The Commission’s chairman made it clear, how the agency effected enforcement measures against some digital currency Ponzi schemes including My Big Coin Pay Inc, The Entrepreneurs Headquarters Limited and Coin Drop Markets.
As Giancarlo, these measures lend evidence that CFTC together with SEC and other financial law enforcement authorities will protect investors and prosecute aggressively crypto schemes involved into fraud and manipulations.