On Thursday, Commodity Futures Trading Commission (CFTC) commissioner Caroline Pham advocated for a limited pilot program to regulate digital assets in the US.
During a speech at a Cato Institute event, Pham emphasized the need for a regulatory sandbox for cryptocurrencies to help keep the US aligned with advancements in the industry. She pointed out that the US is falling behind in standardizing crypto regulation and suggested that her proposed program would draw inspiration from previously established state-level sandboxes.
Pham stated, “Today, I will propose that the CFTC launch the first-ever US pilot program for digital asset markets. Our principles-based framework is designed to foster innovation in technology, new products, and market structures. By adopting a wait-and-see approach, we risk losing out on significant opportunities to harness the benefits of the technology at our disposal, while other regions take a more strategic and long-term view. The US may soon find itself in a position of constantly playing catch-up, unable to effectively leverage this technology for economic growth.”
She further proposed that the CFTC implement regulations addressing the risks associated with crypto assets, with the findings from the pilot program informing the final regulations.
“A pilot program can establish a framework for emerging technologies and market structures within our existing legal and regulatory framework. I hope that this pilot will help test, gather data, and develop a pragmatic approach to tokenization, ensuring we uphold our mandate to foster open, transparent, competitive, and financially sound markets.”
Additionally, last month, the CFTC charged several major firms, including Wells Fargo and the Bank of Montreal, with multi-million dollar penalties for the off-channel use of WhatsApp and iMessage by employees.