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CFTC Commissioner Proposes Pilot Program for Regulating Cryptos in US

CFTC's Caroline Pham calls for a crypto regulatory pilot, paving the way for evolving market structures and enhanced investor protections

Shashank Bhardwaj
Published: Sep 8, 2023 03:44:48 PM IST
Updated: Sep 8, 2023 04:54:01 PM IST

CFTC Commissioner Proposes Pilot Program for Regulating Cryptos in USCaroline Pham, Commissioner of the US Commodity Futures Trading Commission. (Photo by Patrick T. Fallon / AFP)

Caroline Pham, a Commodity Futures Trading Commission (CFTC) member, has put forth a groundbreaking proposal for a limited-time pilot program to regulate crypto in the United States. Her initiative seeks to nurture compliant digital asset markets and drive the adoption of tokenisation.

During a recent address at a Cato Institute event, Caroline Pham outlined her innovative plan to usher in a pilot program dedicated to regulating crypto in the United States. As a prominent figure within the CFTC, Pham has consistently advocated for greater clarity and transparency in crypto regulation, and this pilot program represents a significant milestone in that journey.

Pham envisions a meticulously structured program that will operate for a predefined duration. It will draw upon essential components from previous pilot initiatives, covering critical aspects such as registration prerequisites, eligibility criteria, financial resource allocation, risk management strategies, product and contract terms, and the imperative need for comprehensive disclosures and transparent reporting mechanisms.

The genesis of Commissioner Pham's proposal followed extensive discussions and roundtable deliberations, which were instrumental in garnering valuable insights from stakeholders in the US crypto industry. Pham firmly believes that the CFTC should proactively address the unique regulatory challenge of cryptos and their associated technologies.

In her address, Pham underscored the paramount importance of staying ahead of the curve and being well-prepared to embrace transformative changes within the financial sector. She perceives the pilot program as a conduit for a robust framework for emerging technologies. The objective is to foster open, transparent, competitive, and financially sound markets within the crypto sphere.

However, the CFTC's current leadership is under Chairman Rostin Behnam, a Democratic appointee for whom Caroline Pham's proactive strides toward crypto innovation might encounter constraints. The crypto industry eagerly awaits comprehensive legislation from Congress to govern the US crypto sector.

Caroline Pham's proposal for a pilot program dedicated to crypto regulation exemplifies a forward-looking approach to tackling the challenges and opportunities the crypto industry presents. While her vision garners positive sentiment among many industry stakeholders, its ultimate progress and impact hinge on the broader regulatory landscape and the willingness of regulators to adapt to the rapidly evolving crypto ecosystem.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash