Robert Steinadler, 2 months ago
Regulatory authorities are usually very careful when making statements about what could possibly happen in the future in the market. Recently, Rostin Behnam made some remarks during a fireside chat and shared his perspective on Bitcoin and the broader crypto market.
What is the chairman of the CFTC thinking about regulation and why does he believe that Bitcoin could potentially double in price?
During the talk, Behnam reportedly pointed out that a regulated market with the CFTC involved would prove to be beneficial.
In the US as well as the rest of the world there is still a large gap in regulation when comparing crypto markets to markets for traditional assets like stocks or bonds. According to Behnam a lot of cash is waiting on the sideline that lies in the hands of institutional investors and they prefer a more regulated environment before they invest.
He estimated that an influx of institutional investors could create the needed buying pressure to double Bitcoin’s price. During the last few months, the price movement was determined by the Feds strategy to fight inflation and it is not clear if Behnams estimation has any chance of becoming reality. The reason couldn’t be more obvious. Institutional investors already have the opportunity at hand to enter the market. It was in August when BlackRock announced the integration of Bitcoin into its ALLADIN platform, effectively opening the market and making it accessible to institutional investors.
The CFTC is only a small regulatory body compared to the SEC which is also visible when comparing both authority’s funding. Needless to say, we should take Behnams words with a grain of salt. Not only is the market already accessible for big investors, but he was also rooting for his own team.
Both CFTC and SEC would like to get authority over the crypto market and it is not yet clear who will claim which parts. So far, the CFTC is enforcing US securities laws when it comes down to derivates trading and platforms that are affiliated with that. The SEC on the other hand engages with companies over the question of whether their crypto assets are to be considered securities or not. The case against Ripple and XRP is perhaps the best example of the SEC’s involvement.
At the end of the day, he could be right while his statements serve his own agenda. Should an influx happen via BlackRock or other major players, then the market would face immense momentum and eventually pick up in terms of price.
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