On June 4, Rostin Behnam commissioner of the U.S. Commodity Futures Trading Commission (CFTC) took an interesting stance on cryptocurrency and related technologies during a talk at the BFI United Nations Summit.
Rostin Behnam, New Cryptocurrency Ally?
While Rostin Behnam, the aforementioned commissioner of the CFTC, took the stage at the UN Plaza in New York, he expressed positive views on the cryptocurrency industry. As well, he added an extra layer to his opinion of the market, taking a side of healthy skepticism.
What is interesting, is what topic the summit was specifically covering. The topic was: Fostering Open, Transparent, Competitive, And Financially Sound Markets
Seeing Behnam take a unique twist on this topic, including discussion about cryptocurrencies, caught many by surprise. He continually praised the power which this world-changing technology has, instead of taking the common move of berating cryptocurrencies as a tool of criminals, specifically stating:
We are witnessing a technological revolution. Perhaps we are witnessing a modern miracle.
He also expects that cryptocurrencies will begin to take attention away from traditional economic systems, with Behnam adamantly declaring:
Virtual currencies may – will – become part of the economic practices of any country, anywhere. Let me repeat that: these currencies are not going away and they will proliferate to every economy and every part of the planet.
Additionally, he noted that he believes that cryptocurrencies will become an essential part of smaller economies, with these economies becoming “dependent on virtual assets for survival.”
As mentioned earlier, he took a side of cautious skepticism while looking at the industry, pointing out that cryptocurrencies could become a method in which the rich can control the movement of wealth. This has already become a growing problem in the industry, with some cryptocurrency ‘whales’ reportedly manipulating the market to their own benefit.
Many worry that as vast amounts of institutional and retail investment arrive, that this problem may begin to compound, becoming even worse for those with less financial influence.
CFTC Takes Oversight on The Cryptocurrency Market
As a representative from the government, it was important that the commissioner also mentioned regulation which the cryptocurrency industry will have to face at some point in the near future.
At the start of his speech, Behnam also mentioned that the CFTC is responsible for providing oversight in the cryptocurrency market, reminding the audience that the CFTC “ensure(s) that the markets are free from fraud and manipulation.”
This lines up with an action made by the CFTC earlier this week, with the regulatory body demanding that cryptocurrency exchanges give up trading data. The CFTC believes that this data will help to determine whether prices in the cryptocurrency market are being manipulated.
Many blame the recent bearish trends to market manipulation, but until the CFTC finishes their investigation, there will be no definitive answer to help put a nail in the coffin.
To put a cherry on the cryptocurrency market’s metaphorical top, Behnam said:
Virtual currencies could transform the economic and social landscape. It could mean a massive, and equitable, shift of wealth. Technology could be transformational, without a military take-over, civil war, or political or religious creed.”
Also adding his positive outlook on the technology which underlies Bitcoin, the Blockchain, specifically stating:
Blockchain is more than technology: it is an advance that reaches out into every aspect of life. We could use Blockchain to address the most basic, the most primal problems on our planet: corruption, income distribution, poverty, food, and health care. And, the fear billions of people experience everyday as they try to survive.
This opinion also lies in line with the opinions of many others in the cryptocurrency industry, with many investors in the space expecting that cryptocurrencies and related technologies will replace traditional systems.