The CFTC should regulate cryptocurrency, not other agencies

<p>The Commodity Futures Trading Commission, rather than the Securities and Exchange Commission or the United States Treasury, should oversee cryptocurrency markets, according to its former chairman in an interview with Yahoo Finance on Friday.</p> <p>As the debate over digital token oversight takes shape and the White House develops an overarching strategy, J. Christopher Giancarlo believes it is time for Congress to take the lead and allow his former agency to regulate the asset class. The FBI and Department of Justice have joined an inter-agency coalition that includes the SEC and Treasury.</p> <p>However, appointing the CFTC as primary regulator would make it easier for institutions to participate in retail markets "because those markets would have a well-established federal regulator overseeing those markets, and looking after things like consumer protection, adequate funding, and protections against fraud and manipulation of those markets," Giancarlo explained to Yahoo Finance Live.</p> <p>The ex-regulator also proposed industry oversight by a self-regulatory organisation (SRO), as well as a revision to how crypto assets are classified as financial instruments.</p> <p>Indeed, current CFTC Chair Rostin Behnam made the same pitch to lawmakers last week, with Congress set to be the final arbiter of any new regulations. The Federal Reserve is also considering issuing a digital dollar, a proposal that has been stymied by fears that a Fed coin would undermine the US dollar's dominance.</p> <p>Separately, the SEC has been ramping up enforcement actions in an effort to protect investors ahead of the Biden administration crafting an executive order, which Yahoo Finance reported could come as soon as next week.</p> <p>SEC Chair Gary Gensler has publicly asked lawmakers to introduce legislation. However, formal legislation is not expected to be enacted this year.</p> <p>Giancarlo told Yahoo Finance that while he expects "a lot of proposals to flow in 2022" he doesn't see Congressional consensus for a "comprehen