Tighter Crypto Regulations Needed, According to CFTC Commissioner

Tighter Crypto Regulations Needed, According to CFTC Commissioner

The CFTC’s Commissioner Caroline Pham publicly announced that the Commodity Futures Trading Commission will be expanding its crypto regulations and customer protection policies.

She was quoted saying that her worries centered around the lackluster customer protection plans, and proper disclosures without which results in “people… buying some of these crypto tokens thinking that they’re guaranteed to strike it rich” whereas in reality they are risking everything. Pham continued, saying that she welcomes “the efforts of Congress to provide a clear and holistic regulatory framework over crypto, and to make it very clear and even to expand the CFTC’s jurisdiction in this space”

Pham focused on a couple crucial points related to crypto during here conference: customer protection, legal enforcement, shadow banking, and stablecoins. She raised concerns that the CFTC had around stablecoins and whether or not to consider them as proper derivatives.

Shadow crypto-based banking concerns were also raised following the Terra controversy in which the Terra stablecoin collapsed after promising a 20% return to investors. Pham thinks that after the collapse it is crucial for immediate crypto regulations to take full effect.

All the while, the CFTC is continuously pinching perps and breaking apart crypto related fraudulent schemes. If the CFTC get approved to enhance its digital coin regulatory measures, consumers will surely be safer than before, but at what cost to the indusrty?

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