Despite some complexities surrounding the recently proposed crypto market structure bill, a clearer picture is starting to form regarding crypto market oversight, according to ProCap BTC chief investment officer Jeff Park.
"The CFTC will own a larger domain over crypto than the SEC," Park said during an interview with crypto entrepreneur Anthony Pompliano, published on YouTube on Friday. He emphasized that there is still "lots of complexity with different stakeholders."
"I think that is directionally correct in my opinion," he continued. "The CFTC is in the business of financial innovation at large, and it is in the business of managing capital efficiency, and leverage and derivatives products." Park explained that this aligns with what the crypto industry is building: a new settlement layer that brings capital efficiency at different speeds.
Jeff Park: CFTC Oversight "Makes Sense"
Park also stated that treating crypto as a commodity is consistent with the international nature of the market.
"It makes sense that the CFTC be the regulator who can look at the broader section of global commodities markets and coming up with rulemaking," he said.
This perspective has been echoed across the crypto industry, particularly as the SEC under the Biden administration has been widely perceived as adopting a "regulation-by-enforcement" approach to the US crypto industry.
"The US is very much an onshore regulator for investment securities that Americans are generally accessing, unless you’re going to the different private fund model," Park added.
This discussion follows the release of a discussion draft of crypto market structure laws on Monday by two US senators: Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker.
Proposed Bill Could "Allow More Types of Innovations," Park Suggests
Boozman commented, "The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers."
Park pointed out that this clarity will enable more types of innovations within the industry, such as DeFi protocols.
There has been growing speculation regarding who will take long-term leadership at the CFTC. Michael Selig, currently serving as chief counsel for the crypto task force at the US SEC, is scheduled to face questioning from senators next week in a hearing to consider his nomination as chair of the CFTC. Since September, CFTC acting Chair Caroline Pham has been the sole commissioner at the agency.