On Thursday, Caroline Pham, a commissioner at the Commodity Futures Trading Commission (CFTC), advocated for the implementation of a limited pilot program aimed at regulating digital assets within the United States.
During her speech at a Cato Institute event, Pham proposed the establishment of a regulatory sandbox specifically designed for the crypto industry. Her objective is to ensure that the U.S. keeps pace with the rapid developments occurring in this field. Pham emphasized that the United States is falling behind in standardizing regulations for cryptocurrencies. Her envisioned program would resemble previous sandboxes at the state level.
Pham stated, "Today, I will suggest that the CFTC initiate the inaugural pilot program for digital asset markets in the United States. Our principles-based framework is well-suited for fostering technological innovation, new products, and advancements in market structure. By adopting a 'wait and see' approach, we risk missing out on the numerous benefits offered by this technology while others take a more strategic and long-term perspective. The U.S. could soon find itself constantly playing catch-up, missing opportunities for leveraging this technology for economic growth."
Pham recommended that the CFTC develop regulations addressing the risks associated with crypto assets based on the outcomes of previous sandbox programs. The permanency of these regulations would be determined based on the findings from the proposed sandbox initiative.
"A pilot program can establish a framework for handling emerging technologies and market structures within the existing framework of our laws and regulations. I hope that by implementing a pilot program to test, collect data, and formulate a practical approach to tokenization, we can ensure that we continue to fulfill our mandate of promoting open, transparent, competitive, and financially sound markets."
It's worth noting that last month, the CFTC imposed substantial fines on several major firms, including Wells Fargo and the Bank of Montreal, for violations related to the unauthorized use of WhatsApp and iMessage by their employees.
