Top Federal Securities And Commodities Regulators Testify On Virtual Currency Regulation Before Senate Banking Committee

On February 6, 2018, Chairman Jay Clayton of the SEC and Chairman J. Christopher Giancarlo of the Commodity Futures Trading Commission (CFTC), in their testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs, discussed the role of their respective agencies with respect to regulatory oversight of virtual currencies. In opening remarks and published testimonies, Chairman Clayton and Chairman Giancarlo emphasized their desire to ensure the safety and soundness of U.S. financial markets, as well as to punish those who engage in fraudulent, manipulative and deceptive conduct in the virtual currency marketplace.

Building on central themes from their recent joint op-ed published in The Wall Street Journal, Chairman Clayton and Chairman Giancarlo said that, while they were confident that their agencies can achieve their regulatory mandates, they perceived potential gaps in the U.S. regulatory apparatus. For example, they said that the agencies lack