A commissioner with the Commodity Futures Trading Commission (CFTC), Dawn Stump, has voiced concerns about cryptocurrency regulation through enforcement — the approach taken by both the CFTC and the U.S. Securities and Exchange Commission (SEC).
CFTC Commissioner Stumps on Crypto Regulation
Dawn Stump (CFTC Commissioner) has voiced concerns about how her agency and U.S. Securities and Exchange Commissions (SEC), are regulating the cryptocurrency industry. Commissioner Dawn Stump is vocal in her support for clear guidelines regarding crypto assets.
In an interview with the Financial Times, published Wednesday, she explained that she opposes “regulating through enforcement.” Noting that regulators are hitting companies with fines and lawsuits without providing clear compliant guidelines, she said:
What I discourage here at the CFTC is bringing enforcement actions without giving the tools they need to be compliant … I think there’s a lot of that happening right now.
She emphasized: “We’ve never designed a regulation that explains to these entities how they could achieve that registration. I would have preferred that we would not have brought those types of cases until we had better defined how they might achieve compliance.”
Many lawmakers shared similar concerns, and demanded more clarity regarding crypto regulation. Senator Pat Toomey (R-Pa.) said this week that “failure” by SEC Chairman Gary Gensler “to provide clear rules of the road for cryptocurrencies underscores the need for Congress to act.”
Hester Perce, SEC Commissioner, has also advocated against regulation through enforcement. She stressed the need to have more clarity regarding crypto regulation. Gensler insists that there are no rules defining whether an asset can be considered a security.
Stump however said that:
The SEC is a great institution. [give]More details on the process that led to them concluding some of these items are securities.
Let us know what you think of Dawn Stump’s comments to the CFTC Commissioner. Comment below.
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