US CFTC commissioner suggests crypto industry to self-regulate
Following Japan’s footsteps in pursuing cryptocurrency self-regulation, Brian Quintenz, commissioner of the United States Commodity and Futures Trading Commission (CFTC), has proposed crypto industry to establish a self-regulatory status. The commissioner made the notable statement during the Bipartisan Policy Center panel.
Quintenz went further and explained his vision to the rest of the panel participants. He stated that due to the lack of the crypto oversight capabilities, a self-regulatory structure might actually be the best solution, since it provides the platform for all industry players to discuss, agree, implement, and hopefully even examine an audit. Additionally, the same self-regulatory body would be able to conduct audits regarding a multitude of matters, including conflicts of interest, business conduct, insider trading, redemptions, custody and liquidity.
The commissioner emphasized that under the U.S. laws the self-regulatory body would still be under the oversight of the Congress. Notably, another participant of the panel, Securities and Exchange Commission (SEC) commissioner Hester Peirce, has stated that the current crypto-related laws in the U.S. are “confusing.” While dismantling the delay in regulating Bitcoin exchange-traded funds (ETFs), Pierce emphasized that on the other hand this delay might actually allow more freedom for the industry to grow on its own. According to the commissioner, we should see more clarity on Bitcoin ETFs in the U.S. market very soon. He also emphasized that while there are lots of financial areas and products that aren’t currently regulated in the United States, derivatives are nevertheless built on top of them, and there is no reason Bitcoin ETFs will not follow the same approach.