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CFTC Commissioner: Existing TradFi Regs Aren’t a Good Fit for Crypto
There is some risk of financial stability in crypto, but the industry might just need better clarity and clearer guidelines, rather than a new set of rules, said Christy Goldsmith Romero, a commissioner at the Commodity Futures Trading Commission, speaking on Coindesk TV’s “All About Bitcoin.”
She proposed a more reasonable approach, saying regulators need to better study existing regulations to see if they really apply to crypto and proceed from there, rather than blindly adopting a “one-size-fits-all” approach. Romero added that because digital assets are different from traditional financial products, “We really have to look if [current regulation] has worked, and say, 'can that apply?' If [current regulation] cannot apply, then we can look to address [crypto] in a way that has the same regulatory outcome."
Romero also said that Congress needs to provide more clarity on whether the CFTC or Securities Exchange Commission should be the lead regulator of the crypto space.
“There’s a regulatory gap in that there is no one market regulator over bitcoin or other commodities [and] digital assets that are not securities,” she said.
Rep. Sean Patrick Maloney introduced a bill in September that favors the CFTC as lead. It’s unlikely to pass this session but would be reintroduced in January.
Romero’s Coindesk appearance is a quick 10-minute interview and worth the watch.