Chairman Of CFTC Encourages More Crypto Derivatives Regulation

The chairman of CFTC, Heath Tarbert, explained about Phase 1 of the upcoming US-China trade deal which is supposed to be signed on Wednesday this week as we reported previously in our latest crypto news.

According to the chairman of CFTC, the trade deal will be ‘’an immense success’’ and the agreement is now signed so we should start seeing the US markets as energy and agriculture coming back to where they were initially before the trade war with China started a few years ago. Tarbert also noted his primary concern as the Chair of the CFTC which is making sure that commodities such as Bitcoin and Ether are safe and accessible for everyone in every industry. So the users wonder if this is enough to help bring legitimacy back and widespread adoption for crypto derivatives?

While the future is not yet certain for many crypto derivatives, Tarbet says that regulation is the only solution that we need. There’s an ever-expanding market for crypto derivatives but the problem is that these marketplaces are ones of less-regulated exchanges. This combined with the competition of regulated counterparts will make the investors rather skeptical about investing in digital products. According to Tarbert, one of the biggest concerns about the market participants is that they need more clarity and as it stands now, Bitcoin and Ether are the only two cryptocurrencies that are sanctioned by the CFTC as commodities. All others are unregulated assets which raises a huge red flag for most investors.

On the other hand, Tarbert stated that by regulating crypto derivatives, the futures markets will be allowed to develop according to these digital products which will make them safer and more accessible than before. In the near future, the market participants will be able to rely on the futures markets when buying crypto and other assets. The futures markets have been here for a long time but the investors will be able to rely on them for reassurance in the near future. Tarbert’s opinion that the CFTC is now working to legitimize and to add liquidity to these markets, is apparent and true. Although many believe that regulation goes against the principles of cryptocurrency, Tarbert believes that by regulating the crypto derivatives, a new market for digital assets will be created.