On Thursday, Commodity Futures Trading Commission (CFTC) commissioner Caroline Pham advocated for a limited pilot program for digital asset regulation in the US.
In a speech delivered during a Cato Institute event, Pham called for the regulatory sandbox on crypto jurisdictions to keep the US at pace with advances in the field. In her speech, Pham indicated that US efforts are lagging behind in standardising crypto regulation. Her proposed program would be similar to previous state-level sandboxes.
She announced: “Today, I will propose that the CFTC launch the first-ever US pilot program for digital asset markets. Our principles-based framework is built for innovation in technology, new products, and market structure. In waiting and seeing, we’re missing opportunities to capitalize on all the benefits of the technology before us, while others take a more strategic and long-term view. The US may soon find ourselves constantly playing catch-up, unable to effectively leverage this technology for economic growth.”
Pham proposed that the CFTC adopt regulations addressing the risks of crypto assets based on the results of previous programs, and to determine the permanency of the regulation based on the conclusion of the proposed sandbox.
“A pilot program can create a framework for emerging technologies and market structures under our existing laws and regulations. It is my hope that a pilot to test, gather data, and develop a pragmatic approach to tokenization can ensure we continue to uphold our mandate to fostering open, transparent, competitive and financially sound markets.”
Last month, the CFTC charged numerous large firms, including Wells Fargo and the Bank of Montreal, with multi-million dollar penalties for off-channel employee usage of WhatsApp and iMessage.