Bitcoin 2024: New legal framework could increase adoption

The United States Commodity Futures Trading Commission (CFTC) and the political parties reached a consensus, will develop and approve the "2020-2024 strategic plan". The regulator will follow the principled approach put forward by its chairman, Heath Tarbert. United States regulators have set themselves the goal of improving innovation and the regulation of market participants.

The U.S. regulator recognized that Bitcoin and Ethereum are part of this “new commodity” category. Therefore, in the next few years both cryptocurrencies could enjoy full approval from a U.S. institution and legal framework. Consequently, a new era of adoption could arrive in the coming years.

In its strategic plan the CFTC recognizes that it still has a long way to go in this area. It further states that the way it regulates matters as much as what it regulates. Therefore, the institution will be guided by the following:

(…) we will be guided by the important results of the resistance, avoiding systemic risk, and improving the integrity of the derivatives markets and advancing the interests of Main Street.

In addition, the regulator will implement the new regulatory approach proposed by its chairman, Heath Tarbert. In an attempt to maintain America’s leadership in innovation, Tarbert proposed a system of principles to replace fixed rules. That way, the regulator will have more freedom to regulate new assets such as cryptocurrencies while no longer applying obsolete regulations that prevent it from doing its job. The CFTC stated that for the Strategic Plan:

(…) we will emphasize the principles to which we expect the industry to adhere. Where appropriate, a principled approach can help our markets remain fair, innovative and vibrant.

The CFTC president was pleased with the unanimous approval he received for the plan. He also noted that, unlike previous years, the regulator was able to create a short and concise document on the objectives of the CFTC. In that sense, Tartbert stated:

It will guide the last of the CFTC’s pending issues to completion and better position the agency to address the unwritten future.

As part of the Strategic Plan, the regulator will seek to strengthen the derivatives market. The CFTC will promote transparency and liquidity for assets under its jurisdiction. This could reduce the number of cryptocurrencies and digital assets that obtain the classification of commodities, such as privacy coins Monero, Dash, Zcash. As reported by CNF, this issue is one of the most important currently in crypto space.

Author : Reynaldo