Caroline Pham, the Commissioner of the Commodity Futures Trading Commission (CFTC), recently talked elaborately about the regulator’s plans for cryptocurrency regulations and customer protection.
While talking to two of the major US media platforms, Pham touched on several key crypto-related issues like shadow banking, stablecoins, customer protections, regulation and enforcement.
She revealed that one of the primary questions among regulators and lawmakers is whether to consider stablecoins, including algorithmic stablecoins as derivatives.
“The SEC regulates securities, but for everything that is not a security the CFTC
CFTC
The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commission. These are today the largest regulators and authorities in the United States. The Commission works to guarantee that trading on the U.S. futures exchanges are fair and honest and maintain integrity in the marketplace. There are 11 U.S. Futures Exchanges. The Commission is outside of the political realm and is not controlled by any party. To ensure this at no time can more than three members represent the same political party.The CFTC has recently given the go-ahead to a startup exchange that wants to attract individual traders to the risky world of futures. The Small Exchange, headed by a former executive of T.D. Ameritrade Holding Corp., won approval from the Commodity Futures Trading Commission on in 2020 to become the newest U.S. futures exchange. The current exchanges in the U.S. under the…
