Speaking at the LA Blockchain Summit, the Chairman of the Commodities Futures Trading Commission: Heath Tarbert said US regulation is lagging behind cryptocurrencies and blockchain.
“I’ll be the first to agree that innovation probably doesn’t come from government.”Tarbert explained the role of digital securities in the derivatives market to interviewer Anthony Pompliano on October 7 as part of an event segment. Tarbert stated that the private sector is often the leader in innovation and that regulators are tasked with overseeing that progress. Added:
“I think my role as a regulator is not so much to innovate ourselves, we want to be innovative for a regulator, not necessarily the community, but we have to keep up.”
Since the inception of the cryptocurrency and blockchain industry about 11 years ago, US regulation has generally not kept pace with this rapidly evolving sector, often using a persistent approach.. The first coin offers that appear in 2017 serve as an example. In response, regulators firmly opposed this new method of fundraising. As a result, token sales have now almost died out.
Another example is Ripple’s XRP, which has been one of the top crypto assets since 2013 and was rated by CoinMarketCap based on a historical snapshot.. XRP saw a lawsuit in early 2020 claiming the asset as collateral, a decision that should have been resolved years ago.
Many regulatory growth problems in the crypto space affect the Securities and Exchange Commission (SEC), although regulation needs to catch up overall.
Tarbert took over his role as chairman of the CFTC in July 2019 and stepped onto the scene after the 2008 market recession ended amid a significant technological advance. “It was a good opportunity to revisit our mission,” declared Tarbert. The Commission has developed an updated mission statement. The CFTC wants to “promote the integrity, resilience and vitality of the US derivatives markets through strict regulation,” said Tarbert, citing the mission statement.
“Of them, vitality is the one that reaches innovation, reaches the point of innovation where we don’t want our markets to be out of date, but rather for them to evolve and innovate.”
However, the current landscape seems to contradict this avowed desire for innovation. American traders are still struggling with many crypto exchanges banning American participants for fear of the country’s rigid regulatory scene. BitMEX crypto derivative exchanges are one of the recent examples of these associated consequences.