In a testimony that struck a chord with many cryptocurrency investors worldwide, the chairman of the Commodity Futures Trading Commission (CFTC) expressed his support for the growth of cryptocurrencies worldwide. CFTC chairman, Mr. Christopher Giancarlo, along with the chairman of the Securities and Exchange Commission (SEC), Mr. Jay Clayton, delivered their testimonies in support of distributed ledger technology and digital currencies as investments to the Senate Banking Committee on the 5th of February. These testimonies come in the face of recent crackdowns that have had numerous investors shying away from fully investing in digital currencies or blockchain technology as a whole.
CFTC and SEC chairman literally saving the reputation of cryptocurrencies
Mr. Giancarlo expressed his respect for the new generation and their enthusiasm regarding virtual currency, likening the rise of digital currency to the ‘dot com’ era that saw a similar rise in the internet that seems so normal to us today. He went on to suggest the registration of distributed ledger and cryptocurrency companies in what he termed as a “do no harm” process that allowed legitimate traders and companies to thrive while also weeding out the ones with fraudulent intent.
Noting it as “expected”, he went on to state that with every new and exciting movement, there are bound to be bad actors trying to take advantage of the situation for their own dishonest intent. He also stated his belief that initial coin offerings can be very effective ways for budding startups and entrepreneurs to raise the funding that is needed for their pursuits.
Successful use of blockchain technology
He went on to speak on the positive effects that blockchain technology has had. One such effect was the successful handling of Sixty-six million tons of American soybeans in the transaction between the Dreyfus Company and China, and its various applications in the logistics and transportation industry as well. He also stressed the importance of Bitcoin as a cryptocurrency, stating that without it there would be no blockchain technology, to begin with.
Mr. Clayton expressed his support of the efforts in policy and regulation attempts to bring clarity and fairness to the use of digital currency as a whole, while also expressing his hope that people continue to pursue blockchain technology vigorously.
This came as great news for people and corporations invested in digital currency or blockchain technology in some way, and it saw the price of Bitcoin go up to as high as $7650 on the 6th of February within just one day of dipping below $6000. It has been on the drop for some time now thanks in part to increase in regulatory scrutiny by governments among many other factors, and experts say it could still drop further before stabilizing.
These statements by the CFTC chairman and SEC chairman are definitely steps in the right direction of saving the reputation of cryptocurrencies as a whole. They are huge stamps of approval for the pursuit of the better use of blockchain technology and digital currencies with a more honest approach. While they may have been seen by many as scams in the past, cryptocurrencies are finally receiving the right kind of support that could turn them into the proper next type of currency that people may use freely in the future.