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:
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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.