CFTC chairman explains why authorities criticize Libra and are cold to Bitcoin
The chairman Commodity Futures Trading Fees USA (CFTC) Heath Tarbert, speaking to CNBC on Wednesday, said that he wants the development of digital innovation and the cryptocurrency market, and for this it is necessary to take care of its integrity and establish proper control over money laundering.
When asked why politicians in Washington are up in arms against Libra, but are relatively cool about Bitcoin, Tarbert noted that Bitcoin has been around for about 10 years. During this time, regulators managed to figure out what they were dealing with, while Libra still raises many problematic questions. The head of the CFTC acknowledged that the stablecoin is just beginning to develop, but already has many characteristics of an exchange-traded fund (ETF), which is why its regulation could be entrusted to the Commission on US Securities and Exchange Commission (SEC), while preferred to evade the final classification.
The head of the CFTC stressed that bitcoin is not considered legal tender in the United States, but is recognized as an exchange commodity and, like other exchange commodities, is regulated by his department in accordance with the Commodity Exchanges Act..
“I never use the term cryptocurrency. I always say “digital asset” because I believe that they have not yet become legal tender, this is not money. Instruments such as Bitcoin are extremely valuable, but again, we consider them exchange commodities, ”he explained..
However, he admits that he sees some development in this direction, with cryptocurrencies, for example, starting to be used to pay taxes. The United States, according to Tarbert, is still far from revising the definition of cryptocurrency, but the idea itself does not seem unacceptable to him..
He also admitted that the blockchain can acquire comparable or even higher importance than the Internet, primarily for the implementation of all kinds of transactions, not limited to the financial sphere, and expressed the opinion that the United States should consciously go to leadership in this area..
“Blockchain technology is primarily used for digital assets. But whoever becomes the leader in this technology will ultimately dictate the rules to the whole world, ”he added..
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