CFTC Commissioner Proposes Pilot Program for Regulating Cryptos in US

Caroline Pham, Commissioner of the US Commodity Futures Trading Commission. (Photo by Patrick T. Fallon / AFP)

Caroline Pham, a Commodity Futures Trading Commission (CFTC) member, has put forth a groundbreaking proposal for a limited-time pilot program to regulate crypto in the United States. Her initiative seeks to nurture compliant digital asset markets and drive the adoption of tokenisation.

During a recent address at a Cato Institute event, Caroline Pham outlined her innovative plan to usher in a pilot program dedicated to regulating crypto in the United States. As a prominent figure within the CFTC, Pham has consistently advocated for greater clarity and transparency in crypto regulation, and this pilot program represents a significant milestone in that journey.

Pham envisions a meticulously structured program that will operate for a predefined duration. It will draw upon essential components from previous pilot initiatives, covering critical aspects such as registration prerequisites, eligibility criteria, financial resource allocation, risk management strategies, product and contract terms, and the imperative need for comprehensive disclosures and transparent reporting mechanisms.

The genesis of Commissioner Pham's proposal followed extensive discussions and roundtable deliberations, which were instrumental in garnering valuable insights from stakeholders in the US crypto industry. Pham firmly believes that the CFTC should proactively address the unique regulatory challenge of cryptos and their associated technologies.

In her address, Pham underscored the paramount importance of staying ahead of the curve and being well-prepared to embrace transformative changes within the financial sector. She perceives the pilot program as a conduit for a robust framework for emerging technologies. The objective is to foster open, transparent, competitive, and financially sound markets within the crypto sphere.