Despite some complexities around the recently proposed crypto market structure bill, a clearer picture is starting to form regarding crypto market oversight, according to ProCap BTC chief investment officer Jeff Park.
“The CFTC will own a larger domain over crypto than the SEC,” Park said during an interview with crypto entrepreneur Anthony Pompliano published on YouTube on Friday, while emphasizing that there is still “lots of complexity with different stakeholders.”
“I think that is directionally correct in my opinion,” he said. “The CFTC is in the business of financial innovation at large, and it is in the business of managing capital efficiency, and leverage and derivatives products,” he said, explaining that aligns with what the crypto industry is building, a new settlement layer that brings capital efficiency at different speeds.
Jeff Park says it just “makes sense”
Park also said that treating crypto as a commodity is consistent with the international nature of the market.
“It makes sense that the CFTC be the regulator who can look at the broader section of global commodities markets and coming up with rulemaking,” he said.
This view has been echoed across the crypto industry, especially as the SEC under the Biden administration was widely seen as taking a “regulation-by-enforcement” approach to the US crypto industry.
“The US is very much onshore regulator for investment securities that Americans are generally accessing, unless you’re going to the different private fund model,” Park added.
It comes after two US senators, Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker, both proposed the discussion draft of crypto market structure laws on Monday.
Jeff Park says it will “allow more types of innovations”
Boozman said, “The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers.”
Park pointed out that the clarity will allow for more types of innovations to come through the industry such as DeFi protocols.
Related: UK central bank still ‘disproportionately cautious’ about stablecoins
There has been growing speculation over who will take long-term leadership at the CFTC.
Michael Selig, who is currently serving as chief counsel for the crypto task force at the US SEC, is set to face questioning from senators next week in a hearing to consider his nomination as chair of the CFTC.
Since September, CFTC acting Chair Caroline Pham has been the sole commissioner at the agency.
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