The CFTC chairman (Commodity Futures Trading Commission), J. Christopher Giancarlo says that bitcoin is like gold but it isn’t an ideal medium of exchange.
Most of the cryptocurrency enthusiasts refer Giancarlo as that “Cryptodad” because of his willingness to engage with nascent industry with a positive mind.
During an interview with CNBC, he mentioned that bitcoin is not an ideal medium of exchange.
He added, ““There are certainly aspects of this that you might call a virtual asset like gold, only it’s virtual, it’s digital,” he said. “But it is an asset that many find worthy of holding for a long time and that has aspects to it that might not be ideal as a medium of exchange, that might be more suited as a buy and hold strategy.”
Moreover, the markets regulatory speaking with the network from annual Milken Conference which was held in Los Angeles added that it is quite difficult to neatly fit bitcoin and the other cryptocurrencies into the current regulatory classifications and majority of them date back to 1930s.
He said, “Bitcoin and a lot of its other virtual currency counterparts really have elements of all of the different asset classes, whether they’re meeting payment, whether it’s a long-term asset,” he said. “We see elements of commodities in [bitcoin] that are subject to our regulations, but depending on which regulatory regime you’re looking at, it has different aspects of all of that.”
While the lawmakers and regulators had a debate whether CFTC and SEC (Secutirites and Exchange Commission) have the authority to oversee cryptocurrency markets; however, Giancarlo has stressed a lot that such actions should only be made at legislative and not the regulatory level.
CFTC is also investigating cryptocurrency related frauds and market manipulation. Needless to say it doesn’t have the authority to supervise trading platforms on a daily basis.