Commodity Futures Trading Commission (CFTC) logo with a background featuring a variety of cryptocurrency currencies.
On November 21, CFTC Commissioner Summer Mersinger underscored the pressing necessity for standardized and transparent cryptocurrency regulations in the United States during the North American Blockchain Summit. She clarified that the current system primarily relies on enforcement actions, which can be perplexing and ambiguous for crypto companies to comprehend and adhere to the regulations.
The CFTC was compelled to rely on a court decision to determine whether a DAO should be classified as a corporation or an association, which she deemed an impractical approach to addressing such matters.
“The CFTC and SEC have recently implemented a “regulation by enforcement” strategy,” Mersinger stated. She employed the most recent allegations against Uniswap Labs as an example. In the absence of established policies, regulators frequently resort to litigation in order to classify entities such as decentralized autonomous organizations (DAOs).
Mersinger mentioned that Uniswap paid a nominal fine to resolve its dispute with the CFTC, which may suggest that regulators are exercising a more accommodating stance. Nevertheless, she emphasized the necessity of explicit laws to assist crypto companies in avoiding legal entanglements and determining the precise actions they must take to adhere to the regulations.
This methodology necessitates modification. She believes that decisions regarding the treatment of an entity should be derived from explicit principles that are established through appropriate discussions and public input rather than from court rulings.
Consequently, Mersinger contended that the CFTC is adequately suited to supervise the cryptocurrency spot market, despite the fact that it is smaller than the SEC. She is of the opinion that the agency has the capacity to implement significant legislative changes with minimal market disruption.
She also emphasized the significance of open communication between the industry and policymakers, stating, “Don’t hesitate to start pounding on doors from day one.”
This is due to Mersinger’s desire for transparent regulations and public participation in the process, which will facilitate the comprehension and implementation of regulations for the expanding crypto industry.
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