A former US markets regulator says he is concerned by the volatile prices seen in cryptocurrency markets – and that he believes regulation can solve the issue.
Writing for CNBC, Bart Chilton – who served as a commissioner for the Commodity Futures Trading Commission (CFTC) from 2007 to 2014 – wrote today that big fluctuations in the price are worrisome. Earlier this month, bitcoin shot above the $5,000 mark, subsequently tumbling amidst a spate of bad news developments. At press time, the price of bitcoin is trading at around $3,651, according to the CoinDesk Bitcoin Price Index (BPI).
The jumps in price, in particular, should serve as a warning to users that bitcoin's price may being artificially inflated, Chilton argued.
He wrote in the piece:
"There's no questions – zero – that had digital currencies been regulated, I would have sought an investigation into the precipitous price changes we've witnessed."
Chilton ultimately concluded that, in his view, "money will be digitized" and cryptocurrency will be part of that process. At the same time, he called for advocates for the tech to proactively work with regulators – before they go ahead and make their move first.
"Rather than waiting for governments to take actions that thwart the development of digital currencies, [digital enthusiasts] should lead efforts to put in place appropriate regulatory oversight for these new and innovative financial technologies," he wrote.
His op-ed comes more than a year after Chilton, who worked in both the Clinton and Obama administrations, called on then-President Barack Obama to launch some sort of regulatory framework to oversee cryptocurrencies.
Image via BartChilton.com