Former CFTC Chairman Warns: Without Clear Cryptocurrency Regulations, U.S. Banking Sector May Fall Behind in Global Financial Competition

On March 9, former Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Chris Giancarlo, stated that compared to the crypto industry itself, the U.S. banking system urgently needs a clear cryptocurrency regulatory framework, or it may fall behind Asia and Europe in the global financial innovation race.

In the podcast “The Wolf Of All Streets” hosted by Scott Melker, Giancarlo pointed out that even if the U.S. Congress fails to pass the Cryptocurrency Market Structure Act, the industry will continue to develop. However, banks will find it difficult to make large-scale investments in blockchain technology or digital asset infrastructure without regulatory clarity. He explained that bank boards typically follow legal advice, and without clear rules, it’s hard to approve billions of dollars in technological investments.

Giancarlo believes that blockchain and digital assets represent a new architecture for the financial system. If U.S. financial institutions cannot adapt to this transformation in time, they may miss the next wave of fintech innovation. He warned that once the global “digital financial track” is established, U.S. banks might suddenly find that their traditional identity and information-based financial structures are losing competitiveness in international markets, forcing them into passive upgrades.

Currently, the U.S. Cryptocurrency Market Structure Act, known as the CLARITY Act, remains stalled in the Senate. Banks, crypto companies, and legislators have yet to reach consensus on key issues such as stablecoin yields. The bill was previously passed by the House of Representatives in July 2025 and sent to the Senate Banking Committee for review. If ultimately approved, it will be signed into law by President Trump.

Giancarlo pointed out that even if the bill fails, U.S. regulators might still provide a temporary framework through administrative rules. He believes that under the push of regulators like SEC Chairman Paul Atkins and CFTC Director Mike Selig, agencies could develop transitional policies to offer some guidance to the industry in the short term.

However, Giancarlo emphasized that such temporary rules cannot replace a stable legislative framework. Banks will find it difficult to fully participate in digital finance development without long-term policy certainty, even as the crypto industry continues to grow under strong regulation.