CFTC Chair: Cryptocurrencies 'Unlike Any Commodity' Agency Has Seen

Cryptocurrencies have proven to be a unique challenge for the Commodity Futures Trading Commission, the agency's chairman has said.

AccessTimeIconDec 12, 2017 at 4:20 p.m. UTC
Updated Sep 13, 2021 at 7:15 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrencies have proven to be a unique challenge for the Commodity Futures Trading Commission (CFTC), according to the agency's chairman.

In a statement made yesterday, J. Christopher Giancarlo, remarked on the risks posed by cryptocurrencies and initial coin offerings (ICOs).

His comments were a response to Securities and Exchange Commission (SEC) chairman Jay Clayton, whose comments on cryptocurrencies, also made yesterday, followed the latest enforcement action by the that agency.

Giancarlo commended his SEC counterpart for encouraging market participants and investors to "recognize risks and legal responsibilities they have regarding cryptocurrencies and [ICOs]."

He went on to say:

"I have said consistently that virtual currencies are unlike any commodity that the CFTC has dealt with in the past, and I know they pose challenges for the SEC as well."

Notably, Giancarlo added that the two agencies are in "regular communication" with each other regarding both digital currencies and ICOs, highlighting the degree of inter-agency cooperation within the U.S. government on issues around cryptocurrencies.

Giancarlo further noted that his agency cannot effectively regulate cryptocurrencies, saying "the relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority."

He concluded with a warning for investors, saying, they should "be aware of the potentially high level of volatility and risk in these markets."

In his Dec. 11 comments, Clayton stated that the SEC would examine any asset impacts to the U.S. securities market, including cryptocurrencies if they fit the profile for securities.

Image by Michael del Castillo for CoinDesk

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.