In a current interview with Cheddar, Heath Tarbert, Chairman of the CFTC, sat down to chat about Phase 1 of the forthcoming U.S.-China trade deal, slated to be signed Wednesday of the week.
According into Tarbert, that the trade deal will probably “be an immense success,” and once the deal is signed, we will begin to see U.S. markets, including agriculture and energy, return to where they had been originally before the trade war together with China started a couple of short years back.
Tarbert also speaks about his principal concern as the Chair of this CFTC: making sure commodities, for example Bitcoin and Ether, are safe and available for everyone in every area of industry.
Could this function as only real push to help bring validity and widespread adoption to cryptocurrency derivatives?
While that the future remains uncertain for several crypto derivatives, Tarbert believes that yes, law is the alternative that we have been waiting for.
On Cryptocurrency and Digital Assets
Today, there’s an ever-expanding marketplace for cryptocurrency derivatives.
But the matter is that these marketplaces are unregulated exchanges. This, along with the contest in their regulated counterparts, makes shareholders quite bemused about investing in digital products.
According into Tarbert, one of the greatest complaints from market participants is they require more clarity in regards to cryptocurrencies. As it stands, Bitcoin and Ether would be the only two cryptocurrencies now sanctioned by the CFTC as commodities. All others are currently unregulated digital assets, which raises a significant red flag for most investors.
On the flip side, Tarbert claims by regulating those (Bitcoin and Ether), and other cryptocurrency derivatives, the futures markets will probably be permitted to grow based on those digital goods, which makes them more secure and more accessible than previously.
In flip side, later on, market participants would have the ability to require the futures markets when buying cryptocurrencies along with other digital assets.
The futures markets have been in existence for quite a while. Therefore, shareholders would have the ability to rely on these for reassurance, and “price discovery, hedging, and risk management.”
Altogether, Tarbert’s view is that the CFTC is presently functioning to “legitimize and add liquidity to these (cryptocurrency) markets.”
A Brighter Future For Crypto?
Although several observers think that law goes against the principles of cryptocurrency itself, Tarbert believes the regulation of cryptocurrency derivatives may, “create a market for digital assets.”
Regulations might irk some market participants. ) But, regulation may also signify a golden chance for cryptocurrency derivatives to take the world by storm.
For instance, if the U.S.- China trade war started a couple of decades past, that the U.S. government supplied massive bailouts into the agriculture industry, which was profoundly influenced by the tensions between both nations.
But in the moment, if there had been regulated cryptocurrencies readily available, farmers and ranchers could have had other possibilities, instead of accepting the government bailout.
In the conclusion, the law of cryptocurrency derivatives is not likely to shut doors, it is likely to start them. And create digital assets safer and more accessible for anyone who may benefit from investing.
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