CFTC Commissioners want Close Cooperation with SEC on Crypto Rules
Agencies to Work Together to Regulate Cryptocurrency
Officials from the Commodity Futures Trading Commission (CFTC) have stated that there is a need for proper regulation of cryptocurrencies in the United States adding that there is a need for cooperation between their agency and the Securities and Exchange Commission (SEC).
Speaking in Washington D.C on Wednesday during the FIA Law Compliance Conference commissioner Brian Quintenz said that there was an effort in both SEC and CFTC to coordinate and harmonize regulatory oversight. Even though he did not put specific emphasis on cryptocurrency, he emphasized on fraud, market manipulation and also disruptive trading involving digital currencies.
Quintenz reminded the audience that CFTC had set up a task force to tackle fraud which is evolving in digital currencies. He thus stressed the importance of cooperation and good relationship with SEC in order to ensure that differences in product nomenclature will not give way to bad actors to slip through the jurisdictional cracks.
The two agencies have started working together, and an example is a case against the alleged My Big Coin and Cabbage Tech digital currency scams. The two are committed to ensuring that fraud and money laundering is reduced during cryptocurrency trading.
Rostin Behnam who is also a commissioner at CFTC spoke on a softer note about cryptocurrencies. He said that the introductions of Bitcoin futures by both CME and CBOE required a hard and fast introduction to blockchain technology. He added that if cryptocurrency is not well regulated, then it could pose a very serious threat to financial stability. He said that the effect may not be felt now, but it could be huge in the future. He asked regulators to act before the threat appears.
Rehnam noted that not everything in digital currencies is fraud adding that policies should understand the technology so that they can address concerns and needs that affect all stakeholders. He was however skeptical of the digital currency’s attempt to draw their own regulations because their motives may be too focused on supporting the industry growth. Even with that, he welcomed ideas for crafting the policies. In his concluding remarks Rehnam: “It’s important we work together and have an honest conversation while seeking solution which focuses on the inclusive regulatory landscape.”