If there’s one key takeaway to be had from the recent dialogues from Yahoo Finance’s crytpocurrency event in New York, it’s that regulators are here for good so folks will just have to get used to it.
While there has been much controversy surrounding this new market, especially with governments cracking down on it with strict regulations, a silver lining on the horizon is that agencies like SEC and CFTC still maintain an open stance towards it. For example, Brian Quintenz of the Commodity Futures Trading Commission pointed out that the recent hearing by the US Senate Banking Committee did not have any of the usual apocalyptic tone when it comes to cryptocurrencies.
In fact, “[Y]ou didn’t hear either chairman say ‘no, absolutely not, this is not safe, we must stop this at all costs.’ No one said that,” he said.
What is even more interesting too is that the chairman did bring up the recommendation of this new industry to consider self-regulation. “We don’t want to be saying no to innovators, or to advancing technology,” said Quintenz. Meanwhile, GDAX general manager Adam White said, “We recognize that regulations are a complementary part of the financial system in many ways.”
Successful models of self-regulation include the Financial Regulatory Industry Authority as well as the National Futures Association. These bodies should be able to provide the proper oversight required for the spot market and exchanges “between now and however long Congress chooses to act.”
As for Brad Garlinghouse, Ripple CEO, “I don’t think the US dollar’s going away in my lifetime. I don’t think the US government’s going away in my lifetime. The revolution isn’t happening outside the system. The revolution’s going to happen inside the system.”