CFTC Commissioner wants new restrictions on Crypto Companies
Christy Goldsmith Romero shared her suggestion to impose a strict rule on the Crypto exchanges so that no one exchange can provide any services on behalf of self-certification procedure.
The United States Commodity Futures Trading Commission (CFTC) is a commodity market regulatory body. Alongside the United States Securities and Exchange Commission (SEC), this agency also regulates a significant portion of the Crypto sector. In the past few years, SEC & CFTC showed significant collaboration & communication to regulate the crypto sector with a collaborative approach.
On 18 Jan 2023, During the University of Pennsylvania event focused on FTX, Christy Goldsmith Romero, commissioner at CFTC, stated that the current process of providing services by the newly regulated exchanges is not good.
She said:
“I urge Congress to avoid permitting newly-regulated crypto exchanges to self-certify products for listing, under the current process that limits CFTC oversight.”
She also said that a new regulatory policy is a mandatory thing on the Crypto exchanges, which helps to prevent their self-certification process.
In short, in near future all the regulated Crypto exchanges in the United States will not be allowed to choose the services they can provide, instead, a separate body will confirm which service they can provide.
Alongside such new policies, the CFTC commissioner also said that all the Crypto exchanges, which are willing to issue new tokens on their corresponding platform, should use the CFTC’s crypto regulatory framework to circumvent registration with the Securities and Exchange Commission (SEC).
For the other Crypto sectors participants like celebrities, venture capital (VCs) firms, and pension fund investors, she said that gatekeepers should remain compliant with the rules & policies and never promote any business/services with the promise to make them rich.
Read also: FTX co-founder SBF again maintains “FTX is solvent”
