TL;DR Breakdown
- CFTC Commissioner , Stump speaks against regulation style of SEC, CFTC.
- Says crypto regulations needs to broken down for forms to comply.
- SEC chair, Gensler says there are no ambiguity in crypto laws.
Dawn Stump, a CFTC commissioner (Commodity Futures Trading Commission), has expressed concerns over the manner in which regulators (CFTC and SEC) manage crypto regulation in the United States of America.
The commissioner questioned the CFTC and SEC’s approach to regulating the industry, noting that she is against regulation through enforcement.
She said this during a recent interview she had with financial times as she noted that regulators are hitting companies with fines and lawsuits without providing clear, compliant guidelines.
“What I discourage here at the CFTC is bringing enforcement actions without giving the tools they need to be compliant … I think there’s a lot of that happening right now, she said.
“We’ve never designed a regulation that explains to these entities how they could achieve that registration. I would have preferred that we would not have brought those types of cases until we had better defined how they might achieve compliance,” she said.
Lawmakers agree with CFTC commissioner on crypto regulation
Some American lawmakers before the CFTC commissioner have also expressed similar concerns on the manner regulators handle crypto regulation in the US.
Senator Pat Toomey said this week that “failure” by SEC Chairman Gary Gensler “to provide clear rules of the road for cryptocurrencies underscores the need for Congress to act.”
SEC Commissioner Hester Peirce has also argued against regulation by enforcement, emphasizing the need for more clarity in crypto regulation.
SEC chairman Gary Gensler states that the rules are clear on what assets are and securities.
Gensler has always been vocal on his approach and priorities to regulating crypto assets, focusing on investor protection.
He describes crypto innovation as real, adding that it has been and could continue to be a catalyst for change in the fields of finance and money.
