Mark Wetjen, one of four CFTC commissioners appointed directly by the US president and Senate, and accountable to organization chairman Timothy Massad, says that the organization has no choice but to examine Bitcoin. He says that he has been personally excited to learn more about the technology underlying the digital currency.
At the same time he said that his organization does not have any intention to ‘skew market’; rather, according to him the role the CFTC could play in helping to shape an industry that is still in its early stages. He also suggested that he doesn’t believe that regulation will encourage already-regulated companies, such as TeraExchange.
Talking to media professionals Mark Wetjen said the he does not really look at it that way and according to him if someone wants to hedge their Bitcoin exposure, and if they’re US citizens, then they need to do that on a regulated, licensed exchange, such as a swaps execution facility, designated contract market or a foreign board of trade.
Nonetheless, he believes that the CFTC is not trying to skew the market; rather, it is trying to make sure that the statutory mandate is being met and that the public is being protected accordingly. At the same time he issued a somewhat stern warning to US Bitcoin merchants that may already be using derivatives platforms that aren’t yet registered with the CFTC.
The CFTC Will Just be observing the Bitcoin Market
Mark Wetjen says that if they are a US citizen, trading a derivative contract and the derivative contract is listed by a company that is not licensed by the CFTC, then they should be concerned. He also clarified that depending on the facts; there could be a violation of the set rules. He has though ruled out any actions bringing any added attention to digital currencies anytime soon.
Answering to a question about the move forward on the subject in 2015 by the CFTC he said that this is dependent on the Bitcoin market itself. However, he further clarified that looking out over the first quarter of next year, he, for one, does not see compelling reasons to host another meeting, but things could change.
Nonetheless, it looks now that the CFTC may be simply interested observer of the Bitcoin market even as larger questions linger, a role that Wetjen suggested perhaps best defines himself at the moment.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org