© Reuters
Investing.com – Stronger regulation of cryptocurrencies is often frowned upon by crypto purists, and the threat of stronger regulation has often been a bearish factor for the and other cryptos.
However, the American CFTC, which supervises the futures markets in the United States, thinks on the contrary that an appropriate regulation could have a powerful bullish impact on the price of BTC.
Speaking at an event hosted by the NYU School of Law, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said CFTC-led cryptocurrency regulation would lead to benefits keys.
“Growth could happen if we have a well-regulated space,” he said, going so far as to predict that “bitcoin could double in price if there is a CFTC-regulated market.”
Behnam also explained that a clear regulatory framework could encourage an increase in institutional investors in the market.
“These established institutions in the crypto space see a massive opportunity for institutional inflows that will only happen if there is a regulatory structure around these markets,” he said.
“The institutions [crypto] non-banks thrive on regulation, they thrive on regulatory certainty, they thrive on a level playing field,” Behnam said.
In closing, a bipartisan bill introduced by leaders of the Senate Agriculture Committee, which oversees the CFTC, would crown the CFTC as the primary regulator of the cryptocurrency industry, expanding the authority agency to oversee crypto spot markets and requiring crypto trading firms to register with the CFTC.