The former chairman of the US Futures Commission (CFTC) argued that the next decade will result in massive consolidation in the digital assets industry and that only a few cryptocurrencies can survive in the long run.
“Only Three or Four Cryptocurrencies Will Survive In The Long Term”
Chris Giancarlo, who served as Chairman of the Commodity Futures Trading Commission (CFTC) from 2014 to 2019, has more than 20,000 digital currencies currently in circulation. Bitcoin, Ethereum and Cardano He predicted that only three or four of them would survive in the long run, such as:
“I think the changing of the credit cycle and the end of easy money will definitely lead to some consolidation in the industry.
We are currently entering a period in which the easy money policies of many of the world’s central banks are reversing and we are seeing a lot of economic turmoil. I realized that cryptocurrencies are much more than just a new asset class. It’s a completely new money, banking and financial architecture, because it’s an internet-based architecture.”
Giancarlo said he first encountered cryptoassets while working at the CFTC, which is tasked with regulating traditional futures markets. He has since become a prominent proponent of the cryptocurrency industry and published his book CryptoDad in 2021.
Giancarlo admitted that regulations need to be improved for this technology to become mainstream and gain consumers’ trust. “Cryptocurrency has been discredited for the older generation. The promise of this technology has gotten in the way of the underlying infrastructure. Valuations definitely outstripped reality in the easy money era,” he said.
The former CFTC chairman concluded his thoughts on cryptoassets by saying:
“I think the industry definitely needs good and smart regulation. I am one of those who believe that the quality of regulation should be considered, not the quantity. The CFTC created the world’s first regulated market for any type of crypto in Bitcoin futures in 2017, and this market works very well.
The CFTC’s success in creating this well-functioning market will likely result in it being granted expanded jurisdiction. It will definitely be the lead regulator for crypto in the US.”
*Not investment advice.
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