CFTC Chairman Speaks on the Potential Launch of a Global Stablecoin

The CFTC chairman Heath Tarbert spoke at a recent lecture at Harvard’s Kennedy School on the regulations in the financial world. Target spoke about the role of the government agency in the space of cryptocurrency and how regulation is executed. 

Global stablecoin

Throughout his talk, the chairman spoke on the possibility of a global stablecoin (as you can probably guess). But he also went onto highlight other topics such too. Aside from an international stablecoin, systemic risk has not particularly been a problem, but a stablecoin of such could see one surface. 

He further mentioned that the Financial Stability Board has gone onto discuss many things in regards to cryptocurrencies and has even come to the conclusion that there are some stand out issues with the majority of digital assets.

Essentially what the chairman was saying is that a global stablecoin only results in there being a ‘systemic risk’.

Tarbert continues saying, cryptocurrencies could be a loophole in anti-money laundering and terrorist financing, highlighting a recent statement from the CFTC, FinCEN and the SEC. 

Another big problem is investor protection according to the CFTC chair.

“These ICOs, where people are issuing cryptocurrencies, may be nothing more than fraudulent schemes.”

He added, speaking on derivatives on commodities of which the CFTC has complete authority over, in the sense of regulations and enforcement.  

“If it’s just a commodity, we don’t necessarily have regulatory authority but we do have enforcement authority. If you have fraud in a commodities market that was not on a futures exchange, it could nonetheless affect the stability of the futures markets.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!