Ex-CFTC Chief: Even Republicans Are Pushing for Crypto Regulation

[Cordillerabit]

In an in-depth interview with CoinDesk, Chilton discussed how the value of bitcoin and the cryptocurrency markets, in general, is influencing this ideological shift.

"The value gets so large that there might be a contagion into the largest financial institutions," Chilton said. "And all of a sudden people's bank accounts get wiped out because of the fear of missing out, and they invest their retirements when they shouldn't."

Chilton continued:

"Maybe it's stupid, but that starts to make people say, 'This could have a larger impact on the investors.'"

At the top of Chilton's list of reasons why Republicans are worried about cryptocurrency now is a single number: $20,000. It was that price, which bitcoin flirted with in December, that Chilton believes made Republicans do a double-take.

Before then, according to Chilton, most political leaders viewed cryptocurrency as a periphery concern, overshadowed by other more pressing matters.

"These congressman and senators have 300 issues they have to worry about. They're dealing with infrastructure and the budget deficit and agriculture -- a zillion things -- the FCC and trade and war and oh my gosh," Chilton said, adding:

I think when bitcoin hit $20,000 and as it was going up, people started saying, 'Something is happening here, and we've got to pay attention.'"

In an effort to help, Chilton became an adviser of ethereum startup Omega One, which is building a compliant cryptocurrency exchange. The company is part of a new wave of startups taking preemptive action in an effort to satisfy regulatory concerns.

Speaking to his approval of those startups' decisions, Chilton concluded:

"I always thought it's better to work with the government and fine-tune where they are to move forward, than to just hope something happens, and then you're over-regulated."

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