Former US CFTC Chairman Chris Giancarlo Criticises Regulators' Crackdown On Crypto

Giancarlo believes that blockchains that power digital currencies contain massive amounts of data on the behaviour of users, which could have privacy implications.

During a speech at CoinDesk's Consensus 2023 event, Chris Giancarlo, the former chairman of the US Commodity Futures Trading Commission and known as 'Crypto Dad' for his support of digital assets, appeared to criticise current US regulators' crackdown on the cryptocurrency industry. He pointed out that the only fully regulated crypto product traded in the U.S. is the futures contracts tied to Bitcoin, which were approved during his tenure. He believes this success serves as proof that regulators can engage successfully with crypto if they have the will to do so.

While Giancarlo did not overtly complain about the current regime in Washington, his comments stood out as US market regulators continue to get tougher on crypto. Members of the industry have expressed their concern that regulators have been too vague on how they view the business and how current laws apply. Coinbase, the biggest US crypto exchange, has recently asked a court to compel the Securities and Exchange Commission to provide greater clarity.

Giancarlo, who is currently co-chair of law firm Willkie Farr & Gallagher's digital works practice and published a book in 2021 titled "CryptoDad: The Fight for the Future of Money," discussed other topics during his speech, including stablecoins. He criticised the US House Financial Services Committee for not including any mention of privacy in the stablecoin bill reintroduced earlier this month. Giancarlo believes that blockchains that power digital currencies contain massive amounts of data on the behaviour of users, which could have privacy implications.

Giancarlo supported Florida Gov. Ron DeSantis's concerns about the misuse of "stockpiles of financial data wreaking havoc on financial privacy and economic liberty." DeSantis recently introduced a legislative proposal that would prohibit the use of a central bank digital currency as money within his state. Giancarlo believes that these concerns are valid and need to be addressed.

Giancarlo's speech at the CoinDesk's Consensus 2023 event highlighted his views on the current state of the cryptocurrency industry and his concerns about the regulatory crackdown. He also discussed the need for greater privacy protections and supported DeSantis's proposal to prohibit the use of a central bank digital currency as money within his state.

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