Cryptocurrency is a commodity under our jurisdiction: CFTC Chair


PRICES MOVE HIGHER. WHAT’S YOUR TAKE ON WHERE INFLATION STANDS RIGHT NOW?>>SO INFLATION IS A FACTOR, OBVIOUSLY IN COMMODITY PRICES. AS IS THE DOLLAR, STRENGTHENING DOLLAR ALSO HAS AN IMPACT ON THAT. SO WE ARE AT CYCLICAL LOWS IN MANY COMMODITY PRICES AND THAT IS A CONCERN FOR US. WE WATCH THAT VERY CAREFULLY. BUT AT THE END OF THE DAY, AS MARKET REGULATORS, OUR JOB — THIS IS FRANKLY DIFFERENT THAN SOME ASIAN ECONOMIES WHERE THE REGULATOR FEELS THEIR JOB IS TO MOVE PRICES ONE WAY OR THE OTHER. THAT’S NOT OUR JOB IN THE UNITED STATES. OUR JOB IS TO MAKE SURE THE MARKETS WORK EFFICIENTLY, OPERATIONALLY COMPETENT, THAT THE MARKETS ARE — HAVE GREAT INTEGRITY A AND MORE IMPORTANTLY, THAT OUR JOB IS TO MAKE SURE WE REMOVE FROM MARKETS BAD ACTORS AND THOSE WHO SEEK TO MANIPULATE MARKETS, SO THOSE WHO HE DEPEND ON OUR MARKETS CAN DEPEND THE PRICES COMING OUT OF THEM ARE FAIR AND WELL PRICED AND WELL SET. MARIA: ONE MARKET THAT’S BEEN MOVING AND AT SOME POINT THAT BECOMES A PROBLEM FOR THE ECONOMY IS OIL. OIL IS UP TO $71.53. I KNOW YOU’RE NOT LOOKING AT PRICES OR DIRECTION ONE WAY OR THE OTHER. WHEN YOU SEE THAT SENTIMENT INCREASING IN THE OIL MARKETS YOU WONDER IF THAT’S GOING TO CUT INTO CONSUMER SPENDING, GASOLINE IS UP, CRUDE IS UP.>>ABSOLUTELY, AND YOU KNOW ONE OF THE CONCERNS IN BREXIT IS ONE OF THE PRODUCTS THAT’S AFFECTED BY THAT LEGAL UNCERTAINTY I MENTIONED IS THE BRENT CRUDE PRICE WHICH IS THE INTERNATIONAL BENCHMARK. ONE OF THE EFFECTS OF THAT COULD BE A MOVEMENT TOWARD THE U.S. BENCHMARK WHICH IS THE WTI. THAT SHOULD BRING AN INTERESTING SET OF DYNAMIC TOSS BEAR AS WELL. WE’RE WATCHING THAT CAREFULLY. MARIA: WE’RE WATCHING CRYPTOCURRENCY, RIGHT? THE MARKETS WITH ALL OF THIS VOLATILITY THIS WEEK WEIGHED ON THE CRYPTOCURRENCY AS WELL. THAT MARKET DOWN $13 BILLION IN VALUE AFTER WEDNESDAY’S SELLOFF. YOU SIGNALED A STRONG ENFORCEMENT POSITION ON CRYPTOCURRENCIES LIKE BITCOIN.>>ABSOLUTELY. SO CRYPTOCURRENCY IS SOMETHING WE’VE BEEN WATCHING SINCE 2015 AT THE COMMODITY YOU AT THE COMMODITY FOU AT THE COMMODITY FUTURES TRADING COMMISSION. IN WE DECLARED IT TO BE A COMMODITY UNDER OUR JURISDICTION. WE TAKE A TWO HANDED APPROACH. ON ONE HAND, VERY STRONG ENFORCEMENT EFFORTS. THERE ARE A LOT OF SCAMMERS, A LOT OF FRAUDSTERS IN THE MARKETPLACE. WHERE WE FIND THEM, WE’RE TAKING THEM OUT. OUR AUTHORITY HAS BEEN CONFIRMED BY TWO FEDERAL COURTS. WE’RE ON THIS STRONGLY. ON THE OTHER HAND, WHEN IT COMES TO INNOVATION, WE TAKE A FIRST DO NO HARM APPROACH, THE OLD DOCTOR’S ADDAGE OF FIRST DO NO HARM. WE WANT TO SEE INNOVATION DEVELOP, INNOVATION DEVELOP IN THE UNITED STATES. IT WAS UNDER OUR WATCH THAT THE VERY TWO BITCOIN FUTURES PRODUCTS HAVE EMERGED. ACCORDING TO THE SAN FRANCISCO FED, IT WAS THE BITCOIN FUTURES EMERGENCE THAT ACTUALLY ZAPPED THE BITCOIN BUBBLE THAT EMERGED AT THE END OF 2017 AND WE’VE SEEN BITCOIN IN SOME PEOPLE’S VIEW ACHIEVE A MORE SUSTAINABLE LEVEL THAN IT WAS DURING THE BUBBLE PERIOD LAST YEAR. MARIA: SOMETIMES MARKETS TAKE CARE OF THEMSELVES.>>INDEED THEY DO. MARIA: DO YOU THINK YOU’LL SEE MORE EXPANSION FOR CRYPTOCURRENCIES? I KNOW THERE’S A NEW EXCHANGE FOR CRYPTO. YOU’VE GOT MORE PEOPLE JOINING IN ON THIS BUSINESS FROM MONEY MANAGERS TO ACTUAL TRADERS.>>INDEED WE’RE SEEING IT. WE’RE SEEING MOVE INSTITUTIONAL MOVEMENT INTO THIS AREA. I THINK WITH MOVE INSTITUTIONAL MOVEMENT, WE SHOULD SEE MORE MAIZATION OF MATUATION OF MATUREION OF MATUREIZN OF MATUREIZATOF MATUREIZATION OF IT. THERE’S A LOT OF CONFLICT OF INTEREST, A LOT OF LACK OF SYSTEMS AND SYSTEM SAFEGUARDS AND THAT’S A CONCERN. BUT LIKE ALL THINGS, IT TAKES TIME TO MATURE. AND WITH THE MOVEMENT OF MORE INSTITUTIONAL INVESTORS INTO THE SPACE, I THINK WE’LL SEE THAT MATUREIZATION. MARIA: IT’S GOOD TO SEE YOU THIS MORNING.

14 thoughts on “Cryptocurrency is a commodity under our jurisdiction: CFTC Chair”

  1. Jp Morgan is the single biggest private owner of silver in the world, I'll keep buying silver, keep your digital ones and zeros.

  2. This is way into my ignorance area. "Hello, I have a bunch of letters before my title and name. I became aware of a global method to manage wealth so I declared myself in charge of it. Two Federal courts have confirmed my global power to regulate any form of wealth I can find." I don't think, "hubris" is a large enough word to describe this.

  3. BTC will be 12k by May next year. Probably followed by an unsustained rise to 25k plateauing again at 12 to 15k. Naysayers keep on being wrong.

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