CFTC Commissioner proposes sandbox scheme for digital assets amidst crackdown on DeFi platforms


Caroline Pham, a Commissioner of the U.S. Commodity Futures Trading Commission (CFTC), proposed that the financial regulator launch a pilot regulatory sandbox scheme for digital assets in a speech delivered before the Cato Institute on Sept. 7.

In the speech, Commissioner Pham highlighted how the U.S. hands-off approach has placed it behind other countries as regards the development of clear regulations for the blockchain and digital asset industry.

How To Get Free Crypto  

The Commissioner noted that a regulatory sandbox program tailored for the emerging industry would help to support the development of compliant digital asset markets and tokenization. She continued that the program would have input from major stakeholders in the field who would “ensure the integrity of our markets and impartial access, foster liquidity and competition, address potential conflicts and risks, and prevent fraud, abusive practices, and manipulation.”

She added:

“The CFTC should propose and adopt rules establishing a pilot program for a specific period of time that incorporates many of the components drawn from past pilot programs, including: registration and eligibility requirements, financial resources and other conditions, risk management, products and contract terms, and other requirements including disclosures and reporting.”

CFTC targets several DeFi platforms

Three DeFi platforms, Opyn, Deridex, and ZeroEx, have chosen to settle the unregistered derivatives trading charges filed against them by the CFTC. 

According to a Sept. 7 statement, the platforms paid fines ranging from $100,000 to $250,000 and were ordered to cease further law violations.

Ian McGinley, CFTC’s Director of Enforcement, said, “Somewhere along the way, DeFi operators got the idea that unlawful transactions become lawful when facilitated by smart contracts.” McGinley added that the department would continue aggressively pursuing unregistered platforms operating within the U.S.

Coinbase Banner  

However,  CFTC commissioner Commissioner Summer Mersinger voiced her disagreement with the regulatory action, arguing that the regulator had not provided any grounds connected to fund misappropriation or other illicit activities.

Mersinger said:

“I am concerned that the Commission in these cases is taking another step down the path of bringing enforcement actions when we should be engaging with the public.”

Go to Source
Author: Oluwapelumi Adejumo

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.