CFTC Director Requests A Pilot Programme For Cryptocurrency Regulation
Commissioner Caroline Pham urged for the CFTC to draft and approve rules on the risks faced by retail investors and for the pilot program to begin with a stakeholder roundtable.
In an effort to address cryptocurrency regulation, Caroline Pham, a commissioner of the United States Commodity Futures Trading Commission (CFTC), proposed a small-scale pilot scheme. Pham stated in a pre-recorded statement for a Cato Center event on September 7 that she was interested in recommending a trial scheme for exchanges for digital currencies after public roundtable discussions, asserting that the U.S.might eventually need to take part to catch-up to governments that welcome cryptocurrency. According to her, the program would be comparable to regulatory sandboxes that had previously been implemented at the local level.
Current laws and regulations clearly show that a pilot scheme might develop an infrastructure for newly developed technologies and market structures, claimed Pham. “I believe developing a pilot to test, gather information, and develop a feasible strategy to tokenization may guarantee we maintain keeping with our mission of fostering democratic, open, viable, and financially secure markets”,Pham said. Pham urged for the CFTC to draft and approve rules on the hazards of cryptocurrencies based on earlier pilot projects and for an industry conference to be held. The commission would decide whether to make the adjustments permanent at the end of the program.
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Pham, one of the five commissioners of the CFTC from April 2022, has asked for more clarification about cryptocurrency regulation. She has proposed efforts targeted at safeguarding crypto retail investors besides serving as the commission's Global Markets Advisory Committee's chairman. The planned experiment followed attempts by US politicians to define the CFTC and Securities and Exchange Commission's duties regarding cryptocurrency regulation. The Financial Innovation and Technology for the 21st Century Act was approved by the House Financial Services Committee in July, paving the way for a possible vote by the entire House before 2024.
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