CFTC Commissioner Calls for Virtual Regulation of Crypto Industry: Is the DEX Era Over?

The US Commodity and Futures Trading Commission (CFTC) has reportedly attempted to implement global industry standards for regulating cryptocurrencies. CFTC Commissioner Carlene Pham indicated that she was working to introduce industry standard regulation for the cryptocurrency industry.

A new proposal is underway

Commissioner Pham’s comments follow the turmoil in the cryptocurrency market last year, which saw many companies go bankrupt or close. In an interview with Bloomberg, Fam revealed that she has held more than 75 meetings with various parties to discuss topics related to crypto regulation.

According to the commissioner, last year’s cryptocurrency outbreak prompted her to work on a new proposal that includes 10 essentials to ensure a responsible market for digital assets. Pham consulted with international policymakers to explore achievable standards at the global level.

CFTC commissioner explains how to handle cryptocurrency

When asked about her position on regulating crypto assets, Commissioner Pham said they should be subject to the same standards as other financial instruments. However, it did acknowledge the need to identify what it described as non-financial cryptocurrency activity and come up with appropriate regulatory and legal frameworks for them.

Speaking about the current state of the crypto market that has seen industry leaders such as DCG CEO Barry Silbert and Gemini’s Cameron Winklevoss engaged in a public dispute, the commissioner indicated that it was a matter of concern.

The commissioner expressed hope that regulators, including the CFTC, will act to provide more regulatory guidance and clarity to the crypto industry by 2023.

Demands for a global standard for cryptographic regulation have increased in conjunction with scandals in the industry. A similar request was made by the Japanese financial regulator earlier this week.

Mamoru Yanase, deputy director general of the Financial Services Agency’s Strategy Development and Management Office, has called on regulators around the world to apply stricter regulations to the crypto sector, similar to those imposed on banks.

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