Barry Tech Review

Best review technology by Barry

According to a CFTC commissioner, TradFi regulations can be used to cryptocurrency to some extent

According to a CFTC commissioner, TradFi regulations can be used to cryptocurrency to some extent


According to Christy Goldsmith Romero, a commissioner at the Commodity Futures Trading Commission, cryptocurrency may present some threats to financial stability, but perhaps all that’s needed are clearer instructions rather than a completely new set of regulations.

In the meanwhile, Goldsmith Romero stated that clarity from Congress would be “useful” in establishing which government body should be in charge of overseeing digital assets.

However, Goldsmith Romero stated that because digital assets are different from conventional financial products, “we have to be a little careful about going to bespoke treatments because we don’t know the consequences of doing so,” adding that authorities should review the established methods of regulating conventional financial markets to see whether they can be applied to crypto.

There is a regulatory void because there is no one market regulator for digital assets like bitcoin or other commodities that aren’t securities, she said.

The CFTC is “comfortable” that Congress is adopting the appropriate course of action because to a bill that Rep. Sean Patrick Maloney (R-N.C.) filed last month and that closely mirrors the agency’s regulatory requirements, according to Goldsmith Romero.

While the Securities and Exchange Commission is in charge of the securities markets, including those for stocks and bonds, the Commodity Futures Trading Commission (CFTC) controls the markets for commodities, bonds, and foreign exchange products. Although it appears that both authorities aim to oversee the cryptocurrency spot market, it is still unclear which organisation will do so. Bitcoin futures are currently governed by the CFTC.

According to her, the agency is attempting to provide clarity in the interim by laying down requirements for crypto-based businesses to register with the government on the derivatives side.

She added that if the agency were “to obtain greater jurisdiction on the spot market side,” it would attempt to apply a similar structure. “That sort of gives them an idea of what it’s like to be regulated,” she said.

The greatest outcome, according to Goldsmith Romero, is some clarity from Congress. In the absence of it, we’ll keep collaborating with the SEC on swap-related matters.

News Summary:

  • According to a CFTC commissioner, TradFi regulations can be used to cryptocurrency to some extent
  • Check all news and articles from the latest Business news updates.

Leave a Reply

Your email address will not be published. Required fields are marked *