To start off he firstly states that SEC and CFTC are cooping up with the emerging innovations of today with the statutes that were written way before. He said:
“We are old agencies, our statutes are written in the 1930s.”
He further elaborated:
More broadly, the SEC, their oversight is over capital formation markets with a big retail focus. Ours, at the CFTC, our focus is on risk transfer markets and we are always focused on derivatives and a lot of that is institutional trading. So we are focused on institutional investments, they are focused on retail.
Giancarlo further notes that the two agencies have “different orientations, different histories, so we do come at these things from different perspectives.”