Jeff Park, Chief Investment Officer of ProCap BTC, is confident that the transfer of oversight for cryptocurrencies from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC) is a step in the right direction. His comments came just days after American senators introduced a bill to shift the regulation of digital assets in this direction.
Arguments in favor of the CFTC?
'CFTC will have greater powers over cryptocurrencies than the SEC,' Park said in an interview with cryptocurrency entrepreneur Anthony Pompliano.
Why CFTC specifically? Park explains simply: 'CFTC deals with financial innovations as a whole, manages capital efficiency, leverage, and derivatives.' And this, in his opinion, precisely corresponds to what the crypto industry is building—a new financial infrastructure that makes working with capital more efficient.
Another argument in favor of the CFTC: treating cryptocurrencies as commodities aligns with the international nature of this market. 'It makes sense for the CFTC to be the regulator that can look at a broader segment of global commodity markets and develop rules,' notes the expert.
New legislative initiative
On November 10, two American senators—Republican John Boozman, chairman of the agriculture committee, and Democrat Cory Booker—proposed to discuss a bill on the structure of the cryptocurrency market.
Boozman stated: 'CFTC is the right agency for regulating spot trading of digital goods, and it is extremely important to establish clear rules for the emerging cryptocurrency market while protecting consumers.'
Park noted that this clarity will pave the way for more innovations in the industry, including DeFi protocols. And this is already a serious claim to a technological breakthrough.
Meanwhile, the question of who will lead the CFTC remains open. Michael Selig, who currently serves as the chief advisor to the cryptocurrency working group at the SEC, will appear before senators next week at hearings on his nomination for the position of CFTC chairman.
