US Commodities Futures Trading Commission Enthusiastic about Bitcoin

Journalist:
Caleb Chen @bitxbitxbitcoin
October 10, 2014

The US Commodities Futures Trading Commission (CFTC) recently held a meeting on Bitcoin. The public meeting was held by the CFTC’s Global Markets Advisory Committee (GMAC) and was sponsored by CFTC Commissioner Mark P Wetjen.

The meeting was first called in September to discuss whether or not the CFTC has jurisdiction over Bitcoin derivatives. The CFTC was joined by expert panelists including Coin Center’s Jerry Brito, Law Professor Houman Shadab, TeraExchange’s founder Leonard Nuara, and BitPay’s Chief Compliance Officer Tim Byun. Together, the group discussed Bitcoin futures’ future and all-in-all the tone of the meeting was positive, much like a recent Canadian Senate hearing featuring Andreas M. Antonopoulos.

Also read: United States CFTC to Discuss Bitcoin Futures’ Future

CFTC Approved Trading

When the meeting was first announced, the Bitcoin price was somewhat affected by the possibility of the CFTC raining down fire on existing Bitcoin derivatives exchanges that may or may not have all the proper regulatory, Know Your Customer, or Anti Money Laundering laws. TeraExchange, the first CFTC-approved Bitcoin derivative exchange, was able to explain to the CFTC that market data can be sifted through to weed out noise or manipulation.

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The US CFTC is currently led by Commissioner Mark P Wetjen, who was previously also the chairman. Wetjen has been recognized for aiding in the Obama Administration’s implementation of the Dodd-Frank Act banking and financial institutions. Hopefully, the CFTC and other US government agencies, can work to destroy the “regulatory capture” that has crippled the existing financial system.

During the meeting, Commissioner Wetjen said:

It just seems like based on what I have learned, some of those applications could be so compelling that it would be a real mistake for us as a commission to not make sure we are staying on top of these developments.

Though there is no official word as to the CFTC’s decisions from the meeting, the feeling from the community is optimistic. Finally, there are articulate people that are being called upon by the regulatory powers that be to help in comprehensive and fair regulation.

Images from Shutterstock.

Caleb Chen @bitxbitxbitcoin

Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.