Ex-CFTC chairman: stop complaining about regulation

Chris Giancarlo, the former chairman of the US commodities regulator CFTC, believes the crypto industry is making far too much fuss about the legal frameworks. It is time to stop complaining about regulation, he says. Yes, clarity is welcome, but innovation does not stop if it fails to materialise.

Innovation does not stop without regulation

Giancarlo points out that the internet continued to grow for decades without any official law. It has been 30 years and there is still no need for an authorising law. This means the crypto industry can also continue to innovate and develop without clear regulation.

The former CFTC chief acknowledges that he would welcome the adoption of the so-called Clarity Act. The proposal, in his view, contains many valuable provisions that move the ecosystem forward. Nevertheless, he warns that the business community must prepare for the scenario in which the law is not passed.

Innovation centres at regulators

Giancarlo advocates that not only the CFTC, but all financial regulators in Washington, should have their own innovation centre with experts. This is what he set up at the CFTC back then with LabCFTC. He believes every regulator in Washington should have such a centre.

Giancarlo’s message is clear: the industry must remain realistic. Regulation is useful, but not essential for progress. Whether the Clarity Act is passed or not, the world simply moves on. This perspective contrasts with the urgency that many policymakers and companies in the crypto sector have expressed about the need for clear regulation.