Under the new spending plan was cut the budget of the Commission on trade commodity futures U.S. (CFTC). In the United States the CFTC is the main regulatory body overseeing the futures market for bitcoin. Given the calls for tougher regulation of cryptocurrencies, which are more often heard from the government, this new step Congress seems counterproductive.
According to Reuters, the CFTC Chairman and Christopher Giancarlo (Christopher Giancarlo) reacted negatively to the decision. In the statement made by the representative of the Commission Erica Elliot (Erica Elliot), it was noted that the CFTC «affected» by budget cuts. The Chairman of the Commission is taking the necessary steps to ensure that budget cuts did not seriously interfere with the work the CFTC. It is expected that Giancarlo will meet with the financial team and the CFTC to develop a plan of action in view of recent events.
In 2017, the CFTC requested
13% increase in its budget for the effective operation as after the global financial crisis of 2008, the number of regulatory and Supervisory obligations of the Commission increased significantly. Reform wall Street, which were adopted by Congress after the crisis, demanded the Commission to control the derivatives market, in particular, until then regulirovaniya market OTC-swaps, which was the main culprit of the 2008 crisis. Added to this is the popularity of the bitcoin market, which began to demand regulation by the Commission.
With all these additions to its obligations, the Commission felt
difficulties at work due to lack of funding. The last four years the funding of the Commission remained at the same level, despite repeated calls for Congress to update the budget. In accordance with the new spending plan, CTFC will receive 249 million dollars – a million dollars less than its current funding.
In February 2018, the CFTC has requested from Congress a budget increase of up to 281.5 million $ 31.5 million more than the amount which the administration trump demanded from Congress to Finance the fee. Earlier in March 2018, he told Congress that the proposed budget of $ 281.5 million dollars is the required amount that will enable the Commission to fulfil its obligations.
The presentation of the new spending plan on March 21, 2018, the Committee on appropriations of the house of representatives announced that a new reduced budget for the CFTC will be sufficient to fulfil its statutory responsibilities.