The Commodity Futures Trading Commission (CFTC) Commissioners believe the time has come to act on cryptocurrency regulation. In the wake of FTX Group's demise, they have pushed crypto industry whistleblowers to come forward.
Before diving into this piece, you may want to catch up on some relevant stories, like how banks have already begun testing a digital dollar on the blockchain or how BlockFi is contemplating bankruptcy and layoffs after the collapse of the FTX.
During a fireside chat discussion conducted by the Texas Blockchain Council, Commissioner Summer K. Mersinger noted that "recently, it's probably been 70-80% of what we speak about." We are definitely in a position where we need to pause, collect the facts, and comprehend what is going on in order to move policy forward.
While the CFTC's Kristin Johnson claimed that whistleblowers in the crypto business would be allowed anonymity if they came out regarding FTX. Given the opacity of certain deals, she continued, such tips play a crucial role in enforcement.
According to Mersinger, the CTFC and the Securities and Exchange Commission (SEC) are resolving jurisdictional difficulties. Both have a role to play; we simply need to find out how to make it work. Although control is decentralized, you take consumer money and place it in a central area that regulators are aware of, see, and can inspect.
She said that the subject is a fascinating political matter since it is not partisan.
Legislators should widen the CFTC's authority to cover the spot market and guarantee that it may intervene if it considers that behavior on a platform outside the US is hurting US clients or markets, as Johnson has urged.
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