In a recent interview, Caroline Pham, Commissioner of the Commodity Futures Trading Commission (CFTC), called on the regulators to provide clear guidance on crypto assets this year.
Speaking to a media channel, Pham mentioned that discussions with the larger global institutions are ongoing. She elaborated that several foreign discussions are currently happening about global industry standards for crypto regulation.
As per the commissioner, she has participated in more than 75 meetings with various parties to discuss topics concerning crypto regulation. In addition, she highlighted that “very advanced discussions” were happening outside of the United States concerning what kind of standards could be applied globally.
Answering the recent issues that highlighted flaws within the space, for example, the recent Gemini and Genesis’ legal troubles, the commissioner noted that regulators must think about how to “use exciting authorities to provide the clarity that is needed now.”
The commissioner noted that this means identifying a crypto financial instrument and holding it to the same standards as other financial instruments. Pham also said that identifying frameworks that apply to non-financial crypto activities and blockchain technology use cases must also be explored.
According to the commissioner, the lack of clarity regarding regulations has been troublesome, and she hopes for more guidance from the regulators this year. She said:
“What I’d like to do is to see the CFTC and other regulators provide more guidance this year, and I’m very hopeful that perhaps we will see more clarity in the United States.”
The commissioner concluded that it is vital to think about what more can be done and not just be satisfied “with maintaining the status quo.”
However, this is not the first time the regulators have highlighted the need for clarity in regulations. There has been continuous strife between the two major regulatory institutions – CFTC and SEC regarding overseeing the crypto sector.
In October last year, the CFTC chairman slammed Congress as the regulators must rely on the 70-year-old case law to determine security or a commodity. Talking of the issues, he elaborated that CFTC’s role as a derivatives regulator presents challenges for them.
They are not in charge of the cash markets. To participate in the markets for “bitcoin cash, ether cash,” and other digital tokens, he had been requesting that Congress grant him “cash authorities. This way, he tries to imply his opinion that digital tokens are commodities, whereas the SEC chief has announced that most cryptocurrencies possess the characteristics of securities.