The former chairman of the Commodity Futures Trading Commission (CFTC) has reportedly said that Senator Elizabeth Warren and her anti-crypto agenda are losing their battle. In a new interview with Forbes, former CFTC chairman Christopher Giancarlo revealed that he is optimistic about the future of digital assets, saying the anti-crypto wing is a “shrinking iceberg.”

According to Giancarlo, the US legislative environment is shifting towards crypto assets, as evidenced by both houses of Congress approving the repeal of SAB 121. SAB 121 is a US Securities and Exchange Commission (SEC) guidance issued in March 2022 that tells entities how to account for and secure their digital assets.

Last week, the Senate passed the bill to repeal the SEC directive by a vote of 60-38. But Giancarlo notes that the White House may veto the bill, a move that traditional banks would likely support. The following was indicated:

“I think the passage of repeal of SAB 121 indicates that the Elizabeth Warren wing is a shrinking iceberg…

While some parts of the banking system may be resistant to digital asset innovation, the fact that they must reserve 100 percent against their assets effectively means that banks cannot be a player in this innovation. I think the rejection of this is clear.

So the White House can veto this, but I think it puts them in an increasingly untenable position against the flow of history, against the flow of innovation.”

Moving on to FIT21, a more recent crypto bill that would give the CFTC regulatory authority over digital asset commodities, Giancarlo says it could work because the CFTC has shown it can regulate non-wholesale markets. To this was added:

“The reason why the CFTC is primarily a wholesale regulator is because it oversees futures markets, where the majority of professional traders operate. It does not monitor spot markets where many retailers operate.

This law would give the CFTC market surveillance regulatory powers over crypto spot markets and not just derivatives markets.

Therefore, the CFTC would engage in some degree of oversight of the retail market. My view on this has changed in part because the CFTC already has certain pockets of retail oversight, and it has shown that it can manage them very well.”


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