Congress, predicted a former CFTC chair, will oppose the SEC’s crypto regulation
Christopher Giancarlo, a.k.a. CryptoDad, anticipates politicians becoming familiar with cryptocurrency in 2022 and adopting a progressive regulatory approach.
J. Christopher Giancarlo is a co-founder of the Digital Dollar Foundation, a non-profit organisation dedicated to the establishment of a fiat-based digital currency in the United States. He is senior counsel and co-chair of the Willkie Digital Works practise at the law firm Willkie Farr & Gallagher. Giancarlo served as chairman of the Commodities Futures Trading Commission from 2014 to 2019 and earned the moniker CryptoDad throughout his time due to his progressive position on cryptocurrency regulation.
“Until recently, authorities have been responsible for developing an official sector response to Web 3.0. During my tenure at the CFTC, that reaction was overwhelmingly favourable and forward-thinking. Recently, the backlash has been far tougher. Regulators’ responses have shifted from passive-aggressive to aggressive-aggressive. Certainly, that is the SEC’s position. What I’m anticipating for 2020 is that Congress will seriously consider cryptocurrency and the developing 3.0 environment as a fresh chance to build a crypto native response. What I’m hoping for in 2022 is for lawmakers to catch up with innovation and create a new legislative framework that is far better suited to this burgeoning new ecosystem.”
Congress’s opposition to the SEC
“Congressmen and women are moving far more ahead of the curve, and the Senate is following suit. That is all well and good. You’ll see them fight back in certain areas against the SEC’s really regressive stance. Cryptocurrency has facilitated financial inclusion for a far larger number of individuals. It has caught the imagination of many more young people in a generation than Wall Street has. And the SEC’s approach to investor protection, which essentially prevents you from engaging in the most exciting new companies and limits them to affluent authorised investors, runs counter to the very progressive approach that crypto presents. As a result, I’m expecting Congress to enter the fray and begin pushing back.”
“I’m also anticipating that 2022 will be a watershed year for central bank digital currencies, particularly a digital dollar here in the United States. The Fed will go considerably farther this year than it has in recent years. And, quite simply, the Digital Dollar Project, which I founded some years ago, will be extremely busy in 2022, launching various experiments and pilot programmes to determine the role that a central bank digital currency may play in this new emerging environment. Not only, since I encourage the growth of all non-sovereign activities, but also to ensure that if the US develops a central bank digital currency, a digital dollar, it respects the social principles of a free society.”