Tuesday, February 7, 2023

CFTC Gets Closer To Becoming The Main Overseer For Crypto

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The CFTC gets closer to becoming the main overseer for crypto in America, according to commissioner Summer Mersinger who said the policymakers are moving closer to the goal so let’s read more today in our latest cryptocurrency news.

CFTC commissioner Summer Mersinger believes that the CFTC gets closer to becoming the main overseer for crypto and the designation will expand the mandate of the regulator to pave the way for it and regulate digital assets like crypto and NFTs. Mersinger made the comments earlier this week at the Reuters Commodities Trading conference. From an industry perspective, the CFTC regulating crypto will be a better choice than the US SEC whose chair believes that they are securities and have to be regulated like stocks. He previously referred to stablecoins as casino poker chips.

Most industry executives backed the bill that the US SEnators Cynthia Lummis and Kirsten Gillibrand aim to make the CFTC the main industry’s regulator and Mersinger commented:

“You’re seeing the industry coalesce around the CFTC becoming the primary regulator.”

The bill is yet to pass but it kicked off the Congressional discussion on which agency should regulate the industry and it was reported that the two agencies will join the forces on crypto regulation but this seems to have fallen wayside. Mersinger added that the CFTC started a review of the role of crypto and Staff started researching the regulation of the spot trading markets:

“We’re still a strong regulator, but our registrants have a lot of flexibility.”

The flexibility will not be there If the SEC becomes the industry regulator since the crypto companies will have to move from the same restraints as banks and brokerages to get registered and approved. If the CFTC does become the main watchdog, most digital assets will be treated as commodities rather than securities. The agency chief Rostin Behnam approved the bill and commented:

“One of the trickiest things we’re going to have to do – and I think they address this very well – is deciphering between a commodity and security.”

SEC Chair Predicted, coins, fail, terra
Gery Gensler

Lummis met with Gary Gensler and sought feedback on the bill. Both agencies however consider BTC and ETH as commodities but there’s a grey area for the rest 13,000 tokens on the market. Galaxy Digital CEO Michael Novogratz exclaimed that the bill is positive and will give senators three cheers.

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