Former CFTC chairman Christopher Giancarlo said that in 2017, US regulators have made every effort to bring down the cryptocurrency market.
Giancarlo, who headed the Commodity Futures Trading Commission (CFTC) until April of this year, said in an interview with CoinDesk:
“This story has remained behind the scenes. CFTC, Treasury, SEC and former director of the National Economic Council (NEC) Gary Cohn thought that launching bitcoin futures would help to burst the bubble formed in the cryptocurrency market. And it really worked. ”
He also noted that the rapid rally, which was observed in the second half of 2017 on the cryptocurrency market, marked the formation of the new largest bubble since the 2008 crisis.
Bitcoin futures were launched on the Chicago Mercantile Exchange (CME) and the Chicago Options Exchange (CBOE) on December 18, 2017. The first cryptocurrency reached its peak value of $ 20,000 on December 17, 2017, after which the price collapsed rapidly and a long downward cycle began.
“We saw that the bubble is growing and quite strong, so we decided to provide the market with tools to interact with it to eliminate this phenomenon. Futures allowed traders to open short positions, ”said Giancarlo.
“The CFTC acted in accordance with the law and in compliance with all necessary procedures, but at the management level I talked with Finance Minister Steven Mnuchin and NEC Director Gary Kon. We were sure that if institutional investors were provided with bitcoin futures, they would restore order with the price. That is exactly what happened. ”
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