Virtual Currencies Present Significant Risk and Opportunity, Demanding Focus From Regulators, According to CFTC Chair

Keeping up with the exploding use of cryptocurrencies like bitcoin demands a special focus from regulators, CFTC Chairman J. Christopher Giancarlo stated in recent remarks to the ABA Derivatives and Futures Section Conference. He noted that virtual currencies represent both significant risk and opportunity for investors, discussed the role of the CFTC and other regulators in overseeing virtual currencies and outlined the CFTC staff review checklist of virtual currency futures markets. Giancarlo also examined the importance of mutual cross-border regulatory deference, using the E.U.’s and CFTC’s approach to margin rules to illustrate the benefits of global regulatory cooperation. See our three-part series on blockchain technology: “Basics of the Blockchain Technology and How the Financial Sector Is Currently Employing It” (Jun. 14, 2017); “How Financial Service Providers Can Use Blockchain to Improve Operations and Compliance” (Jun. 28, 2017); and “Blockchain and the Financial Services Industry: Potential Impediments to Its Eventual Adoption” (Jul. 12, 2017).

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