US CFTC Commissioner Proposes Pilot Program to Address Cryptocurrency Regulation
Summary:
Caroline Pham, a commissioner with the United States Commodity Futures Trading Commission (CFTC), has proposed a pilot program for digital asset markets to address cryptocurrency regulation. The program aims to develop a pragmatic approach to tokenization while upholding transparent and competitive markets. Pham suggests adopting rules based on previous pilot programs and involving stakeholders in the decision-making process. This proposal comes amidst efforts to clarify the roles of the CFTC and the Securities and Exchange Commission (SEC) in crypto regulation.
Caroline Pham, a commissioner with the United States Commodity Futures Trading Commission (CFTC), has recommended the implementation of a limited pilot program to address cryptocurrency regulation. Pham expressed her proposal during a Cato Institute event, stating that the US may need to catch up with jurisdictions that are more friendly towards crypto. She suggested that the pilot program should resemble regulatory sandboxes that have been introduced at the state level. Pham believes that such a program would enable the development of a pragmatic approach to tokenization while upholding the values of open, transparent, competitive, and financially sound markets.
As part of her proposal, Pham called for a stakeholder roundtable and for the CFTC to propose and adopt rules based on the risks identified through previous pilot programs. Following the completion of the program, the commission would assess whether to implement the proposed changes permanently. Pham, who has been serving at the CFTC since April 2022, is one of the five commissioners actively advocating for greater clarity in crypto regulation. She has also been involved in initiatives aimed at safeguarding retail investors in the crypto space.
The suggestion for the pilot program emerged after US lawmakers began seeking clarification on the roles of the CFTC and the Securities and Exchange Commission (SEC) in regulating cryptocurrencies. In July, the House Financial Services Committee approved the Financial Innovation and Technology for the 21st Century Act, which is expected to be voted upon in the full House possibly before 2024.
Published At
9/7/2023 9:59:26 PM
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