Kristin Johnson of the United States Commodity Futures Trading Commission (CFTC) mentioned there are numerous methods of dealing with cryptocurrencies within the nation, however legislating by courts may provide a strong, if sluggish, path.
Speaking on the Blockchain Association’s Policy Summit in Washington, D.C. on Nov. 30, Johnson said the “best outcome” for company governance of crypto companies could be to have corporations implement their very own plans. She cited policymakers introducing reporting necessities for Binance as part of a $4.3 billion settlement with the crypto alternate.
We’re honored to welcome @CFTCjohnson to the #BAPolicySummit stage for our subsequent session as she sits down with @GeorgiaQuinnEsq of @Anchorage pic.twitter.com/FpgQRjPZ0B
— Blockchain Association (@BlockchainAssn) November 30, 2023
According to the CFTC commissioner, Congress may additionally step in and provide clarification as to the definition of a safety — one of many key factors behind the U.S. Securities and Exchange Commission taking enforcement actions in opposition to crypto companies. At instances, the CFTC and SEC have had seemingly inconsistent approaches to crypto enforcement relying on which property the departments thought of a safety or commodity.
“If we rely on the courts we will get good guidance, but it won’t come quickly,” mentioned Johnson. “We’ve been in these situations before with new financial technology, and we should trust in the legal system.”
Related: ‘Premier’ crypto cop CFTC reveals record-setting digital asset enforcement in 2023
Though the CFTC and SEC have each, at instances, settled lawsuits with completely different crypto companies somewhat than going to trial, many corporations have requested for their day in courtroom. Binance and Coinbase are nonetheless going through lawsuits from the SEC filed in June, and the CFTC took legal action in opposition to Voyager Digital in October. At the time, Johnson mentioned Voyager was “no better than a house of cards.”
One of 5 commissioners on the CFTC, Johnson took workplace in March 2022 after greater than a decade working as a legislation professor. She has usually advocated for more robust regulatory controls for crypto and referred to as on Congress to expand the CFTC’s authority over digital property.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
