The former head of the Commission on urgent exchange trade (CFTC) and Christopher Giancarlo has made a sensational confession, saying that the launch bitcoin futures on the Chicago Mercantile exchange (CME Group) was a deliberate action of the administration of Donald trump, called burst formed by the time the bubble in the cryptocurrency market.
In comments to CoinDesk Giancarlo said:
“One of the untold stories of recent years is that the CFTC, the US Treasury Department, the Commission on securities and exchange Commission (SEC) and the then Director of the National economic Council Gary Cohn considered that the launch bitcoin futures will help to burst the bubble of bitcoin. And it worked”.
Bitcoin futures on the Chicago Mercantile exchange (CME) was launched on 18 December 2017. A day earlier, the price of bitcoin has reached its historical maximum in the region of $20 000, but in the months that followed, went down sharply.
On Monday, he also addressed the Pantera Summit in San Francisco, where he said that they were at the end of 2017 the rapid growth of bitcoin prices marked the formation of the first major bubble following the financial crisis of 2008.
“We saw the growing bubble, and thought that the best way to resolve it would be to provide the market tools to interact with it,” he said, adding that with the launch of futures on a regulated market, a possibility of opening short positions.
Also Giancarlo believes that the bitcoin bubble cannot be seen in isolation from the financial crisis of 2008.
“With the completion of the 2008 crisis, the regulators received a dose of legitimate criticism. Where were they when growing mortgage bubble? Why don’t they busted him while they had the chance?”
According to him, the lessons of history has forced regulators to act quickly, and action against bitcoin called it “a demonstration of market forces in restoring order with the prices.”
Christopher Giancarlo resigned as Chairman of the CFTC in April of this year. Earlier this week the current Minister Heath Tarbert said that within six months or year will also appear regulated futures contracts on Ethereum. He also did not rule out launching derivatives on other cryptocurrencies.