CFTC Sets To Launch Pilot Program For US Digital Asset Regulation
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Caroline Pham, a commissioner at the Commodity Future Trading Commission (CFTC), has proposed launching a limited pilot program for regulating digital assets in the US. This program will commence with a stakeholder roundtable and involve adopting rules and addressing retail investors’ challenges.
During a Cato Institute event speech, Pham emphasized the importance of establishing a regulatory sandbox for cryptocurrency. This guideline keeps the United States up-to-date with advancements in the crypto landscape.
She indicated that the regulators in the US need to catch up in standardizing crypto rules, drawing similar features from the preceding state-level sandbox.
The New Guideline Will Bring Innovation To The Market
This high-level guiding principle is tailored to bring innovation in market structure, new products, and technology. Yet, many companies face the possibility of losing the opportunities presented by this technology.
However, Pham has reportedly addressed the issue, as the proposal entails that the CFTC implements guidelines that specifically tackle the risk associated with crypto assets. The outcome of the previous program will also guide it.
The permanence of the guideline would be regulated based on the conclusion of the future sandbox. A pilot program can establish a structure for emerging market structures and technologies within the existing rules and guidelines.
The program is designed to formulate a practical tokenization strategy, experiment, and gather data. This strategy promotes competitive, transparent, open, and financially sound markets.
The Proposal Promises Seamless Accessibility Of Technology
The CFTC has also been severe in its goal of sanitizing the market and making it safer for investors. The regulator recently charged several major firms, including Bank of Montreal and Wells Fargo.
They incurred substantial fines for violations related to using iMessage and WhatsApp by unauthorized employees.
Furthermore, by this step, the CFTC is demonstrating its commitment to fostering a safer and more secure environment for digital asset trading in the United States. It’s a promising leap into the future of finance, where innovation meets responsible regulation, promising seamless accessibility of technology by everyone.
