Former Chairman of the US Commodity Futures Trading Commission (CFTC) Chris Giancarlo and his son Luke Giancarlo were interviewed on 2/16, emphasizing that the current US government is no longer the role of "blocking innovation" as in the past, but is fully open to the development of blockchain and crypto. He pointed out that the current US government no longer requires innovators to apply for "licenses", but instead directly gives the green light, and even mentioned that the Trump (Donald Trump) administration has started to issue meme coins, showing a very clear attitude in promoting the development of crypto.
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ToggleSilicon Valley will take over the discourse power of the financial market
Former CFTC Chairman Chris said that over the past 15 years, the dominance of the US financial market has shifted from Wall Street in New York to Washington, D.C., as the government has imposed stricter regulations on the market through the Dodd-Frank Act after the 2008 financial crisis.
But now Chris believes that "Silicon Valley" is the real winner of this change, pointing out that the allocation of capital in the future financial market will be determined by "algorithms" rather than traditional political or financial institutions. He described this change as the "third shift of financial discourse power", marking the formal disruption of the traditional financial system by blockchain technology.
The US government is no longer the gatekeeper, and innovators do not need to ask for permission
Chris recalled that in the past, if new entrepreneurs in the US market wanted to launch new financial products, they often had to go through a cumbersome regulatory process, and the government sometimes even turned a blind eye, forcing the businesses to run back and forth. However, under the Trump administration's policies, this "permission system" has become history.
Chris shared a conversation he had with the CEO of a major US financial institution, who asked, "Who should we go to for approval of our new plan?" His answer was simple and clear: "The government no longer cares about this, just go ahead and do it!"
CBDC may become the biggest threat to the Bitcoin community
Although the government has fully opened up the development of crypto, Chris also pointed out one of the biggest concerns of the Bitcoin community, which is the central bank digital currency (CBDC). He emphasized that the development of digital currencies is a global trend, but the US must ensure that CBDC has the same "privacy and freedom" as cash, and cannot become a tool for the government to monitor the people.
Chris gave an example, where the Canadian government directly froze the bank accounts of truck drivers during the 2022 protests, showing that if digital currencies lack privacy protection, they may become a tool for the government to interfere with people's financial freedom.
Crypto people are gradually taking over the US government
With the new administration taking office, many key positions have begun to be held by "crypto-friendly" professionals. For example:
- Paul Atkins is expected to become the chairman of the US Securities and Exchange Commission (SEC), emphasizing market freedom and innovation.
- Brian Quintenz is serving as the CFTC chairman, previously responsible for blockchain investment at the venture capital firm a16z, and is very familiar with the crypto market.
- Tulsi Gabbard is serving as a cabinet official, holding Litecoin (LTC) and Ether (ETH), and also publicly supporting the development of Bitcoin.
- Robert F. Kennedy Jr. is serving as the Secretary of Health and Human Services, and has invested most of his wealth in Bitcoin.
"Now almost everyone in the government is from the crypto world, either owning Bitcoin or having a crypto investment background, which is a major change for the market," Chris said.
Blockchain is not just for speculation, all assets in the future will be tokenized
When talking about the development of crypto, Luke pointed out that in the future, not only digital assets like BTC and ETH, but all securities, bonds, and even real estate will be tokenized. He boldly predicted: "By 2035, the issuance of almost all financial assets will be done through blockchain technology."
He used digital photography technology as an analogy: "In the past, photos were printed on paper, but now everyone uses their phones to take photos and store them in the cloud, which is more convenient and flexible. The future of financial assets will also develop in this way."
Is blockchain technology more important than AI?
Although AI has recently become a global focus, both believe that blockchain and distributed ledger technology (DLT) are the most disruptive technologies since the Internet. Luke emphasized: "Our banking system is still based on a concept from hundreds of years ago, like the Crusades, just converted from paper to digital information. But blockchain allows transactions to be completed instantly, without the need for an intermediary to reconcile and confirm."
Luke further explained: "For example, when you pay $100 now, the banks have to reconcile and confirm the transaction back and forth before the money actually reaches you. But blockchain technology can make the money arrive instantly, and it applies globally. This is a revolution for cross-border payments, supply chain management, and even government fiscal systems."
Risk Warning
Crypto investment is highly risky, and its price may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.
