In remarks at the American Enterprise Institute on Tuesday, former Commodity Futures Trading Commission Chairman Chris Giancarlo labelled the Biden administration‘s approach to the crypto business “highly defensive and reactionary.”
The Biden administration’s recent study on stablecoin regulation, according to Chris Giancarlo, demonstrates that the administration is more concerned with “what could go wrong, rather than what could go right if innovation is properly channelled,” while failing to “declare any national imperative to harness digital-asset innovation to upgrade our creaky exclusive financial system to expand inclusiveness and lower costs for new generations of Americans.”
Giancarlo, who was nominated as a Republican commissioner at the CFTC by President Obama and then promoted to chairman by President Trump, founded the Digital Dollar Project after leaving public service in 2019 to support a Fed-backed central bank digital currency.
“I believe we can harness this wave of innovation…for greater financial inclusion, capital and operational efficiency and economic growth for generations to come. But if we do not act, this coming wave of the internet will lay bare the shortcomings of our aged analog financial systems, with potentially disruptive impact on our western economies.”
Giancarlo has backed recent work by the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology to create open-source technology that might facilitate the construction of a digital currency. The Fed has promised a study on the potential and drawbacks of releasing a central bank digital currency. Still, it has yet to be completed, despite Chairman Jerome Powell’s promises in September that it will be delivered “soon.”
The former regulator also believes that Congress should move to streamline regulation of private cryptocurrencies by establishing a new department that would be managed jointly by the Securities and Exchange Commission and the Consumer Financial Protection Bureau.
In remarks Tuesday, he said that Congress should change the cryptocurrency working group he co-founded with then-SEC Chairman Jay Clayton into “a crypto bureau which would have joint parentage of the SEC and the CFTC but would have its own authorization and financing.”
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