CFTC’s Pham says US needs to speed up crypto regulation

The program should be time-limited and designed from a series of roundtable discussions between regulators and stakeholders, Caroline Pham suggested

article-image

JHVEPhoto/Shutterstock modified by Blockworks

share

Commodities Futures Trading Commission Commissioner Caroline Pham thinks a government-run timed pilot program could be the answer for crypto regulation. 

The CFTC can sponsor a program to “support the development of compliant digital asset markets and tokenization,” Pham said during recorded remarks presented at a Cato Institute event Thursday. 

Pham proposed that the program should be time-limited and designed from a series of roundtable discussions between regulators and stakeholders. Interested parties and the CFTC can establish guidelines for companies to qualify, register and appropriately manage risks, she added. 

“I am optimistic that this approach will ensure the integrity of our markets…foster liquidity and competition, address potential conflicts and risks and prevent fraud, abusive practices and manipulation,” Pham said. 

Crypto innovation and international regulations are happening quickly, Pham said, so it is imperative that US agencies get the ball rolling on policies that work well for everyone. 

“We’re missing opportunities to capitalize on all the benefits of the technology before us, while others take a more strategic and long term view,” Pham said. “The US may soon find ourselves constantly playing catch up, unable to effectively leverage this technology for economic growth.” 

Pham’s Thursday comments are not the first time the Commissioner has praised crypto for its disruptive potential. 

“If you cut away from all the froth and the ‘get rich quick’ schemes, what institutions, central banks and asset managers have known since at least 2016 and 2017 is that there is a real opportunity to modernize financial asset infrastructure through tokenization of real assets,” 

Pham said in July during a Bloomberg News interview. 

Also on a federal level, House Republicans have advocated for an increased role for the CFTC in crypto market oversight.

The Financial Innovation and Technology for the 21st Century Act — scheduled for a floor vote this session – establishes joint rulemaking powers between the US Security and Exchange Commission and CFTC. Notably, the bill grants the latter control over digital commodities markets, including exchanges and broker-dealers.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year

article-image

Busan is South Korea’s second largest city with a population around 3.4 million

article-image

Cyprus granted eToro crypto registration, setting the groundwork for the company to operate crypto services post-MiCa rollout

article-image

Sponsored

These are the best tools and practices you can leverage to defend against crypto market volatility

article-image

The agency alleges around 1,160 customers used the margin product, losing about $8.35 million since Oct. 2021.

article-image

On Thursday, the Securities and Futures Commission issued a statement disavowing any communication with JPEX saying that the platform is unlicensed