Although there are some complexities in the recently proposed Cryptocurrency Market Structure Act, a clearer picture is starting to form regarding the oversight of the crypto market, according to Jeff Park, chief investment officer at ProCapBTC.
In an interview with crypto entrepreneur Anthony Pompliano published on YouTube on Friday, Park said, “The CFTC will have more territory in crypto than the SEC,” while stressing that “there are still complexities with different stakeholders.”
“In my opinion, that’s the right direction to go,” he said. “The CFTC is involved in all aspects of financial innovation, including managing capital efficiency, leveraged and derivative products,” he said, explaining that this is consistent with what the crypto industry is building: a new layer of payments that brings capital efficiency at a different speed.
Jeff Park says, “It’s no surprise.”
Park also said that treating cryptocurrencies as a commodity is consistent with the international nature of the market.
“It makes sense for the CFTC to be the regulator that can look at a broader segment of global commodity markets and come up with rulemaking,” he said.
This view is reflected throughout the crypto industry, especially as the SEC under the Biden administration was widely seen as taking an “enforcement regulation” approach to the U.S. crypto industry.
“The United States is largely a domestic regulator when it comes to investment securities that Americans commonly have access to, unless they utilize a different private fund model,” Park added.
This comes after two U.S. senators, Republican Agriculture Chairman John Boozman and Democratic Sen. Cory Booker, proposed a discussion draft of the Cryptocurrency Market Structure Act on Monday.
Jeff Park says, “It will enable more types of innovation.”
“The CFTC is the appropriate agency to regulate physical digital goods trading, and it is imperative that we establish clear rules for emerging crypto markets while protecting consumers,” Boozman said.
Park noted that that transparency will allow more types of innovation to be realized through the industry, such as DeFi protocols.
Speculation is mounting about who will assume long-term leadership at the CFTC.
Michael Selig, currently chief counsel of the US SEC’s Virtual Currency Task Force, is scheduled to be questioned by senators next week at a hearing to consider his nomination to chair the CFTC.
Since September, CFTC Acting Commissioner Caroline Pham has served as the agency’s sole commissioner.
