The pilot may help the US to get closer to bringing regulatory clarity to the crypto ecosystem.
Caroline Pham, a commissioner at the United States Commodity Futures Trading Commission (CFTC), has advocated for a pilot program focused on cryptocurrency regulation.
The announcement was part of a video message Pham sent to a Cato Institute event on September 7th.
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Her suggestion stems from public roundtable discussions and emphasizes the need for the United States to accelerate its regulatory approach to stay competitive with crypto-friendly countries.
Pham suggests that the pilot program would serve as a laboratory for developing a practical regulatory approach to digital assets, similar to "regulatory sandboxes" initiated in several US states.
A pilot program can create a framework for emerging technologies and market structures under our existing laws and regulations. It is my hope that a pilot to test, gather data, and develop a pragmatic approach to tokenization can ensure we continue to uphold our mandate to fostering open, transparent, competitive and financially sound markets.
Besides recommending the pilot program, Pham called for the CFTC to arrange a stakeholders' roundtable discussion. The goal is to formulate and enforce guidelines on cryptocurrency risk management based on the insights gathered from previous and ongoing pilot programs. Once the pilot concludes, the commission would decide whether the newly tested regulations should become permanent.
Pham has consistently urged for clear regulations in the cryptocurrency space. The commissioner has also put forth other proposals aimed at enhancing protection for retail investors involved in cryptocurrency trading.
Earlier in July, the Financial Innovation and Technology for the 21st Century Act received approval from the House Financial Services Committee, setting the stage for a possible vote in the full House before the end of 2024.
In a move to modernize US crypto regulations, CFTC Commissioner Caroline Pham is proposing a pilot program aimed at testing the waters for digital asset markets. This could be a game-changing step towards greater regulatory clarity in the rapidly evolving crypto landscape.
