The former chairman of the Commodity Futures Trading Commission (CFTC) reportedly says Senator Elizabeth Warren and her anti-crypto agenda are losing their battle.
In a new interview with Forbes, former CFTC chairman Christopher Giancarlo reveals he is optimistic about the future of digital assets, saying the anti-crypto wing is a “shrinking iceberg.”
According to Giancarlo, the US legislative environment is shifting towards crypto assets, as evidenced by both houses of Congress passing the reversal of SAB 121.
SAB 121 is a U.S. Securities and Exchange Commission (SEC) guidance issued in March 2022 that tells entities how to account for and protect their digital assets.
Last week, the bill overturning the SEC directive passed the Senate on a 60-38 vote.
But Giancarlo notes that the White House may veto the bill, a move that traditional banks would likely support.
“I think [the passage of SAB 121 reversal] says the Elizabeth Warren wing is a shrinking iceberg…
Although some parts of the banking system may be resistant to digital asset innovation, forcing them to reserve 100 percent of their assets effectively means that banks cannot be a player in this innovation. I think the rejection of this is there.
So the White House can veto this, but I think it puts them in an increasingly untenable position against the flow of history, against the flow of innovation.”
Giancarlo moves on to FIT21, a more recent crypto bill that would give the CFTC regulatory jurisdiction over commodities for digital assets. Giancarlo says it could work, as the CFTC has previously shown it can regulate non-wholesale markets.
“The reason why [the CFTC is] is usually a wholesale regulator because it oversees futures markets, which are largely occupied by professional traders. It does not monitor spot markets where there are many retailers.
This law would give the CFTC market regulator regulatory power over crypto spot markets and not just the derivatives markets.
Therefore, the CFTC would become involved in retail market oversight to some extent. My views on this have evolved in part because the CFTC already has some forms of retail oversight in place, and has proven to be very good at dealing with them.”
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