Bitcoin [BTC] and the crypto industry, in general, were started for the average Joe. Satoshi Nakamoto intended to bring financial freedom to the masses. However, things took a whole new turn as institutional interest in the industry spiked. Sadly, regulators laid out conjectures of how retail investors were at risk.
Therefore, regulations around retail investors pouring their funds into crypto took the front stage. Now, banking on the same, the Commissioner of Commodity Futures Trading Commissioner [CFTC] pitched the idea of setting up an office for retail crypto investors.
In a recent speech, Caroline Pham reportedly proposed the establishment of the “Office of the Retail Advocate.” This idea was put forth with the intention of broadening the CFTC’s consumer protection initiative. The CFTC Commissioner suggested that the office would emerge as a “voice for the people.”
The US crypto scene has been nothing but confusing. With a plethora of regulators at play, regulatory clarity continues to remain hazy. If CFTC’s latest initiative gets a green signal the chances of clear regulations were high. Pham added,
“The crypto crash, risk management failures, and substantial retail losses give urgency to the need to balance innovation with retail protection and appropriate regulation.”
It should be noted that the CFTC commissioner stressed on how blockchain and digital assets could be revolutionary to the existing markets. She noted that even though it’s still early, there were promising use cases that the industry offers. However, the CFTC commissioner went on to stress the stability and scalability factor of blockchain that is to be achieved through “layer 1, 2 or whatever’s next.”
CFTC bullish about Bitcoin?
It seems like the CFTC was bullish about the crypto industry in general. While the creation of a separate office for retail investors is a positive move, CFTC’s Chairman’s comments top the list.
Earlier this week, CFTC Chairman Rostin Behnam suggested that a well-regulated environment could pave the way for assets to thrive. Nothing that Bitcoin could double in price he said,
“Growth might occur if we have a well-regulated space. Bitcoin might double in price if there’s a CFTC-regulated market.”
While there is an ample amount of institutional inflow in the industry, Behnam believes that regulatory clarity would bring in more. Taking a dig at the industry he added,
“And they may say otherwise, they might bicker about the type of regulation – but 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.”