Christy Goldsmith Romero, the commissioner of the Commodity Futures Trading Commission (CFTC), in a recent media interaction, talked of the regulation of the Crypto sector.
The commissioner earlier this week had drawn similarities between the current crypto market scenario and the 2008 global financial crisis, given the collapse of big names in the industry. She explained the topic ahead of time and said that the crypto industry does induce a certain amount of financial risk but can be tackled with transparency over guidelines instead of establishing new rules.
However, the commissioner acknowledges the difference between traditional finance products and digital assets, calling for precision and caution while finalizing the framework for regulation. She also suggested that lawmakers should properly study and review the established ways of regulating traditional financial markets and then see if they can be applied to the crypto industry.
Highlighting the need for transparency and clarity from Congress, the commissioner requested them to be explicit in terms of the organization being responsible for the regulation of digital assets. She pointed to the gap in regulation of digital assets in the U.S. due to a lack of transparency from the authority over Bitcoin and other digital assets that are not considered securities.
Her comments come about the ongoing CFTC-SEC tussle where there is confusion about which organization is lawfully responsible for crypto regulation. The CFTC regulates the future markets of commodities, bonds, and foreign-exchange products, whereas the SEC is responsible for the securities markets along with stocks and bonds. Both organizations have shown interest in regulating crypto; however, CFTC is currently in-charge of crypto futures.
Romero said that the commission is currently working to clarify by establishing standards for registering crypto-based companies on the derivatives front. If given additional authority, a similar pattern would be followed on the spot market side. Further, she said that with more clarity from Congress, the commission seeks to be more efficient; however, until then, it is working with SEC as it is related to swaps.
The commissioner also appreciated the bill introduced by Congressman Sean Patrick Maloney, stating that it reflects the commission’s standards and gains trust for its rightful approach. The bill seeks to make CFTC the primary cryptocurrency regulator in the U.S.