The immediate need for cryptocurrency regulations can be felt in the industry especially after Ripple executive chairman Chris Larsen recently revealed that the lack of regulatory clarity is forcing blockchain giant Ripple to shut down shop in the United States.
Further discussing the crypto and blockchain scene in the US, Dr. Heath Tarbert, chairman of the Commodity Futures Trading Commission (CFTC), spoke with Anthony Pompliano at the LA Blockchain Summit, discussing the regulatory landscape of the industry.
Tarbert took over the office from former chairman Christopher Giancarlo, who has often been referred to as the Crypto Dad. Like Giancarlo, Tarbert is also open-minded about cryptocurrencies and blockchain and has been supportive of these techs so far.
When asked about what role he expects the US to play in terms of technological innovation, which includes the central bank digital currencies (CBDC) as well, Taberth said:
“I want to see the United States lead in blockchain technology. For me, it’s not necessarily something that the government needs to be involved with directly. But there could be benefits to that as well. But I really want to see the US continue to support innovation in this space. Because I do see other countries coming in and starting to potentially take the lead.”
Tarbert expects the US to be at the forefront when it comes to these next-gen technologies, and he would also like to the US dollar to maintain its position as the world’s reserve currency.
However, he stated that when it comes to the developing payments landscape, the US hasn’t kept up with the rest of the world. He believes something needs to be done to address this.
Are Cryptocurrencies Securities?
Talking about the long going debate about whether cryptocurrencies should be categorized as securities or commodities, he maintained a kind of neutral stance on the matter.
“And the first threshold is, is it a security or is it a commodity? Very different. They’re two divergent paths in the road. One leads to the SEC and a very different type of regulation. The other, if it’s a commodity, leads into our space, which is a more principled-based approach and I think in some cases is favored by many people in the crypto community.”
He agreed that the industry needs greater regulatory clarity to further promote the development and adoption of these next-gen technologies. He believes that if a regulation is in place, it could be a game-changer on many different levels.
As of now, it is unclear when regulators in the US would address these issues. However, Chairman Tabert seems to be on the good side for the crypto and blockchain industry.