US Banks Need Clear Crypto Rules to Stay Ahead, ex-CFTC chair says

Chris Giancarlo, former chairman of the US Commodity Futures Trading Commission (CFTC), emphasized that US banks require regulatory clarity for cryptocurrency more than the crypto industry itself. He argued on a podcast that without clear rules, banks are hesitant to invest billions in modernizing their financial architecture, risking being left behind by international competitors in Asia and Europe who are adopting digital payment rails.

The stalled crypto market structure bill, known as the CLARITY Act, remains unresolved in the Senate due to disagreements over provisions like stablecoin yields. Giancarlo warned that if US banks delay adoption, they will find themselves on the 'back foot' as digital systems are built elsewhere.

If the legislation fails, Giancarlo anticipates that leaders at the SEC and CFTC, such as Paul Atkins and Mike Selig, would likely establish interim rules independently. However, he stressed that this administrative rulemaking would not provide the long-term certainty that banks need to fully commit to this financial modernization.

(Source：Cointelegraph)