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Original author: Steven Ehrlich, original source: Forbes
Christopher Giancarlo, formerly chaired the 13th Commodity Futures Trading Commission (CFTC), is also a member of the U.S. Financial Stability Oversight Committee, the Presidential Financial Markets Working Group and the Organizational Executive Committee of the International Securities Commission.
Forbes recently interviewed Christopher Giancarlo.In this interview, we discuss the current regulatory landscape of cryptocurrencies, the prospects for new cryptocurrency legislation, whether the United States lags behind the rest of the world, and how Trump and Biden’s presidency will affect cryptocurrencies for the next four yearsindustry.
Recent situation of the crypto industry
Forbes: How do you evaluate the current situation of the cryptocurrency industry?
Giancarlo: A lot has happened lately.This change is happening, not just start-ups and innovators, but also traditional businesses, with companies like Fnaility in the UK tokenizing central bank deposits, while China’s digital renminbi already has 260 million wallet users.
The Atlantic Council estimates that 138 countries are studying central bank digital currencies, which account for 98% of the world’s GDP.
The development of privately issued stablecoins, especially stablecoins based on the US dollar, is accelerating. If there will be any results in this Congress, it is likely to be stablecoin legislation.
In the cryptocurrency space, Bitcoin’s vitality and usage continue to grow despite frauds like Sam Bankman-Fried and the seemingly coordinated crackdown measures by the Biden administration.Therefore, the decentralized token and value system continues to grow.The current U.S. suppression stance is an exception, an exception to global development.
Forbes: Have you ever talked to Trump about cryptocurrencies?
Giancarlo: Earlier this month, I gave a speech at the Washington Blockchain Summit, where I said Trump could justify being named the first cryptocurrency president of the United States.
It’s not because of what he said or did in the past two weeks, but because of what happened in the first year of his presidency.That is the US Commodity Futures Trading Commission launches Bitcoin futures.But what I want to say is that through the approval of Bitcoin futures by the U.S. Commodity Futures Trading Commission, we ensured that the world’s first digital commodity is denominated in US dollars.
This is important because the US dollar has many advantages, but one of its main advantages is that most of the world’s industrial natural commodities, oil, gold, iron, as well as soybeans, corn and wheat are denominated in US dollars.
Therefore, the world needs to hold dollars to buy these key minerals, agriculture and natural commodities.The pricing of commodities is not in the spot market, but in the futures market; the price of oil is not determined by gas stations.It is decided in trading venues such as the Chicago Futures Market.
By approving Bitcoin futures, we ensure that the price of Bitcoin, the world’s first digital commodity, will be denominated in US dollars.Did the Trump administration say, “CFTC, do this?” No, but did they stop us?No.Are they boycotting the development of a healthy, prosperous, well-regulated market, like our current government?No.
Stablecoin legislation
Forbes: How much space is there to accommodate more private stablecoins?Do you think USDT currently dominates and cannot be shaken?
Giancarlo: There is a huge demand for the US dollar all over the world.In fact, demand for the US dollar remains very strong from South America to Africa to Southeast Asia.
Unfortunately, in many countries, the value of their own currencies is not even as valuable as paper.The dollar is still a very important hard currency.The problem with the US dollar is that it is difficult to obtain US dollars in many parts of the world.
So, I think the global demand for a digital version of the dollar will be huge because it is practical and efficient.
I think the U.S. passes stablecoin legislation to enable well-functioning, compliant stablecoin operators to meet global demand.Once you have well-regulated U.S. players, the chances of seizing market share from Tether will be very high.
Forbes: What do you think is the balance between income stablecoins and non-income stablecoins?I know the current legislation is about non-income stablecoins, but at some point I think token holders will get tired of giving the money to Tether and making these people billionaires.
Giancarlo: I agree.Similarly, worldwide, if you are in a country like Argentina with inflation at an all-time high, the demand for USD-based earnings tools will be huge.I don’t think domestic demand is the driving force, but overseas demand.The US dollar is an export product.
Forbes: Do you think stablecoin legislation will be passed and become law this year?
Giancarlo: Unless there is a crisis like 2008 or a market crash.So, I am not optimistic, but I believe that in the long run, the stablecoin legislation will be passed.
I think the biggest driver is creating more demand for U.S. Treasury bonds.Sadly, one of the main drivers is that we are a country that lives on credit cards and we need more people to buy our debt, which is exactly what the stablecoin will provide.
legislation
Forbes: While President Biden is likely to reject SAB 121, the first special legislation for cryptocurrencies has been passed in both houses of Congress.What is your overall view of this?Does this reflect the current legislative atmosphere of cryptocurrencies?
Giancarlo: While some parts of the banking system may resist digital asset innovation, forcing them to retain the assets they hold 100% actually means banks cannot participate in the innovation.So the White House may veto this, but I think it will leave them abandoned by the historical trend.
This is also a generation gap problem.This anti-cryptocurrency perspective usually comes from people in their 80s, and the next generation does not need to accept this innovation.
One of my favorite writers is Doug Adams, who wrote the “Host the Galactic Guide” series.Adams has a famous saying, I want to rewrite it here, “Anything that invented before you are 35 is cool and worth your time and effort, and maybe even a career in your life. But any at 35What was invented later were dangerous suspects and needed to be suppressed.”
I think for those who grew up in a traditional banking system, they have a lot of hostility toward cryptocurrencies that have passed down from generation to generation, and they cannot understand cryptocurrencies and think that cryptocurrencies are dangerous.
Memecoins
Forbes: Apart from Bitcoin and Bitcoin DeFi, one of the biggest themes this year is Memecoins.What do you think of them?
Giancarlo: I’m not a critic, some people think Memecoin investors are stupid, these tokens waste everyone’s time and energy, but I do think they fit the spirit of the zeitgeist we are currently in.
However, somehow, we should seem to criticize young people for speculation on Meme, as if this behavior is irresponsible, but betting on lottery is a responsible behavior?
Forbes: Do you have any summary?
Giancarlo: I think the dam of the U.S. boycott of this innovation of cryptocurrency is about to collapse.No matter what happens in November, it will crash.Once the dam collapses or the door is half open, it will be completely open.
I believe this because I have traveled globally from London to Tokyo, Dubai, Singapore and Paris.The whole world is saying, “Let’s cultivate our crypto seed now and try to make it take root.” All the very smart and savvy regulators in these countries believe that the United States will turn things around in the next 24 months, peopleIt will flock to Brooklyn, Silicon Valley and Austin, Texas.
Winston Churchill once said that America will always do the right thing after trying all the alternatives.I think we’ve been trying alternatives.
These measures are unsustainable and the United States will make a comeback.We will lose some opportunities, and one of them I mentioned is the development of global information disclosure standards.But I think the United States will make a comeback in the end and will return strongly.
