ForexMinute.com – While the Commodity Futures Trading Commission (CFTC) still remains undecided on their proceedings towards Bitcoin regulations, its commissioner – Commissioner Mark Wetien – proved himself to be more open to this new commodity-come-payment-technology.
In his recent Op-Ed for the Wall Street Journal, Wetien wrote lengths about the importance of Bitcoin in transforming the finance industry, especially the derivatives market which is being generally overseen by his organization. He though referred to a number of virtual currency-based merchants whose comments sent a clear message to regulators, while raising the need to hedge exposures to unannounced volatility in the Bitcoin market.
He went on explaining how the CFTC is taking steps to reduce activities that involve Bitcoin manipulation, starting with treating digital currencies as commodities. This step gives the CFTC the authority to act against individuals that are found to deliberately cause manipulation in Bitcoin value. “CFTC certainly has a responsibility to ensure to the greatest extent the integrity of the derivatives markets, including those for Bitcoin swaps and other virtual currencies,” Wetien added.
He further indicated how such a handful of negative traits are stopping Bitcoin from gaining financial freedom. “Regulators should work quickly to understand how these technologies work and how they affect specific regulatory jurisdictions, with the ultimate goal of creating a regulatory framework should the public begin adopting or using these technologies in greater numbers,” he concluded.
“Creating a flexible and rational regulatory framework also is the best way for regulators to respond to previous incidents such as Mt. Gox, Liberty Reserve or Silk Road – serious innovators will choose to work within such a regime in the U.S. rather than avoid it, which in turn will build more confidence in consumers currently leery of embracing the new technology, or something like it. That will lay the groundwork for future innovation in virtual currencies.”