There is still a long way to go before cryptocurrencies are going to be used for daily transactions. However, slowly, regulatory changes are happening and it is helping the industry to become openly accepted even by institutional investors. There are institutional investors today that are becoming interested in getting involved with cryptocurrencies. You have ICE that even teamed up with Starbucks and Microsoft.
But so far, cryptocurrencies being used as money is still not yet happening. Is the crypto market really here to stay? Or is it simply a fad that will just die down eventually? Many have claimed that the crypto craze is just the same as the dotcom bubble.
As for Christopher Giancarlo, the top derivatives regulator in the US, he stated in an interview that cryptocurrency is “here to stay”.
During his interview, he mentioned that “I personally think that cryptocurrencies are here to stay. I think there is a future for them. I’m not sure they ever come to rival the dollar or other hard currencies, but there’s a whole section of the world that really is hungry for functioning currencies that they can’t find in their local currencies. There’s 140 countries in the world, every one of them has a currency. Probably two-thirds are not worth the polymer or the paper they’re written on, and those parts of the world rely on hard currencies. Bitcoin [or another] cryptocurrency may solve some of the problems”.
And when asked about the timeline when will cryptos be adopted, he then clarified that “we’re talking maybe 10 years down the road”.
Another Pro-Crypto Appointee
Giancarlo has been dubbed as “CryptoDad” after his congressional testimony. He advised legislators that they shouldn’t be dismissing cryptocurrencies simply because it appeals to a younger demographic. And the good news for the crypto market is that he isn’t the only one who tends to favor cryptocurrencies today.
There is also US Securities and Exchange Commission Hester Peirce. Hester Peirce defended cryptocurrencies when the US SEC rejected Bitcoin ETF applications because of price manipulation. She even made a letter of dissent.
Regulators Should Be “Thoughtful”
Giancarlo thinks that regulators have the duty to be “thoughtful” when it comes to their approach to cryptocurrency products. “There’s no question that the United States is leading in a number of areas”. He added that “But there’s other areas as well of innovation where I think it makes sense for us to take a little bit more of a thoughtful and intelligent approach, just as the US Congress did 20 years ago in the early days of the internet”.
This is still a positive development for the crypto market. In fact, finding a supporter from the government is imperative at this point especially that many investors are waiting for cryptocurrencies to be more mainstream. Bitcoin was able to reach near $20K level in 2017. It has experienced a bearish trend this year mainly because of the regulatory changes that have occurred. Since then, we’ve seen a huge drop not only in Bitcoin but in other altcoins as well. And for some experts, they are suggesting that regulatory clarity can change all this.