Share this article
CFTC Chair: 'We're Used To' Volatile Assets Like Bitcoin
As might be expected, Tuesday's Senate hearing touched on cryptocurrencies' volatility. But the head of the CFTC put the matter in perspective.
By Stan Higgins
Updated Sep 13, 2021, 7:32 a.m. Published Feb 6, 2018, 8:15 p.m.
Make us preferred on Google
As might be expected, Tuesday's Senate hearing on cryptocurrency regulation touched on an oft-discussed facet of digital assets: their price volatility.
Appearing before the Senate Banking Committee, Securities and Exchange Commission chair Jay Clayton and Commodity Futures Trading Commission chair J. Christopher Giancarlo were asked about their views on the zigzagging prices, as well as the factors driving those price changes.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Ultimately, both demurred on offering a definitive point, though Giancarlo, whose agency regulates derivatives, pointed out that volatility in bitcoin isn't quite up to par with the VIX Index, known more commonly as the "fear index."
"Bitcoin's volatility was not as large as other asset classes like [the] VIX. We have seen extreme volatility in bitcoin but in our world [commodities], we are used to volatility in asset classes," he remarked.
Clayton was blunt in his answer to the question of why prices are volatile: "I don’t really know what’s driving volatility in bitcoin and cryptocurrencies," he said, going on to remark:
"[Cryptocurrencies are] not correlated with sovereign currencies, so it must be something different than what would move the dollar. But that's one of the issues before us – there does appear to be a lot of volatility compared to the medium they are supposed to be replacing.”
Asked whether derivatives products like exchange-traded funds could help stabilize bitcoin’s wild price fluctuations, Clayton said it would depend on the investors.
Clayton went so far as to suggest that the agency might one day green-light such a financial product, a notable comment given that the SEC shot down the ETF proposed by investors Cameron and Tyler Winklevoss (that effort remains subject to an appeal).
"If we get comfortable ... then we can move forward," he said.
US Capitol image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Strive’s preferred equity blueprint for Strategy’s $8 billion convertible debt overhang
The bitcoin treasury firm is using perpetual preferreds to retire convertibles, offering a potential framework for managing long dated leverage.
What to know:
- Strive upsized its SATA follow on offering beyond $150 million, pricing the perpetual preferred at $90.
- The structure offers a blueprint for replacing fixed maturity convertibles with perpetual equity capital that removes refinancing risk.
- Strategy has a $3 billion convertible tranche due in June 2028 with a $672.40 conversion price, which could be addressed using a similar preferred equity approach.
Top Stories
