Former head of the CFTC, Christopher Giancarlo made a sensational admission, stating that the launch of Bitcoin futures on the Chicago Mercantile Exchange (CME Group) was a deliberate action by the Donald Trump administration, designed to burst the cryptocurrency market that had formed since then.
In the comment CoinDesk Giancarlo declared:
"One of the untold stories of the last few years is that the CFTC, the US Treasury, the Securities and Exchange Commission (SEC) and then director of the National Economic Council, Gary Cohn, thought the launch of bitcoin futures would have helped the bitcoin bubble burst. And it worked. "
Chicago Mercantile Exchange (CME) Bitcoin Futures was launched on December 18, 2017. The day before, the bitcoin price reached its all-time high in the region of $ 20,000, but in the following months it fell sharply.
On Monday, Giancarlo also spoke at the Pantera Summit in San Francisco, where he said that the rapid increase in bitcoin prices observed at the end of 2017 marked the formation of the first big bubble after the 2008 financial crisis.
"We have seen the bubble grow and we thought the best way to eliminate it would be to provide the market with the tools to interact with it", He said, adding that with the launch of futures in the regulated market, it became possible to open short positions.
Giancarlo also believes that the Bitcoin bubble cannot be considered in isolation from the 2008 financial crisis.
"With the end of the 2008 crisis, regulators received some reasonable criticism. Where were they when the mortgage bubble grew? Why didn't they explode while they had such an opportunity? "
According to him, the lessons of history have forced the regulators to act quickly and defined the actions related to bitcoin "a demonstration of the strength of the market in restoring the order with the prices".
Christopher Giancarlo resigned as president of the CFTC in the April of this year. At the beginning of this week, the current department head Heath Tarbert said that regulated Ethereum futures will also appear within six months or a year. Furthermore, it does not exclude the launch of derivatives on other cryptocurrencies.
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