In a Bloomberg interview on January 17, U.S. Commodity Futures Trading Commission commissioner Caroline Pham said foreign regulators are having discussions about crypto regulations and standards.
Pham criticized U.S. regulators for not thoroughly examining the causes of last year’s crypto crash, claiming that investigators could have uncovered interconnected issues and risks related to the crash sooner. The commissioner also added that she had issued fundamental proposals to manage the digital asset market and discussed new standards with international policymakers.
When asked about the current state of the crypto industry, Pham agreed that the state of crypto should be a concern for lawmakers. She emphasized the need to utilize existing authorities and regulatory bodies to provide guidance for current and future traders.
The commissioner spoke at length about defining crypto financial instruments, distinguishing between financial and non-financial activities, setting up legal frameworks, and understanding blockchain technology.
Long-time concerns
Pham has a long history of calling for new laws and standards for crypto in the states. Last May, she discussed the lack of adequate customer protections and regulations with CNBC news and Yahoo! Finance.
She also noted how the collapse of various cryptocurrencies, such as the stablecoin Terra, led to regulators paying closer attention to the larger market.
“It’s so clear with the blowup in Terra and the knock-on effects to broader crypto markets that regulators cannot fail to act any longer to do something to make sure we’re protecting the retail public,” Pham said, “especially when you’ve had billions of dollars in value destroyed.”
In the interview with Bloomberg, Pham discussed the CFTC’s authority over market regulations. She insisted that the CFTC should provide better guidance for the crypto industry in the U.S.
Pham plans to build on the ten digital market fundamentals she devised through collaborations with the Global Market’s Advisory and International Engagement Committees. She hopes to bring standards and practices to the market that traders can rely on in the near future.