Former CFTC chairman warns regulatory uncertainty could leave U.S. banks behind global competitors in blockchain-based financial infrastructure development.
Former U.S. Commodity Futures Trading Commission chairman J. Christopher Giancarlo says American banks urgently need regulatory clarity on digital assets, warning uncertainty could slow financial innovation.
Speaking on The Wolf of All Streets hosted by Scott Melker, Giancarlo argued that while crypto startups can continue building amid legal ambiguity, traditional banks face strict compliance requirements that limit their ability to invest in blockchain infrastructure.
According to him, legal teams at major financial institutions are unlikely to approve large-scale crypto investments without clear federal rules. This hesitation could allow banks in Asia and Europe to lead the next phase of digital finance innovation.
Giancarlo also referenced the stalled CLARITY Act, a bill designed to establish a clearer regulatory framework for the crypto industry in the United States. He added that while regulators like the U.S. Securities and Exchange Commission could issue interim guidance, lasting certainty requires congressional legislation.
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