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Former Chairman of the U.S. Commodity Futures Trading Commission (CFTC) Timothy Massad has proposed that the SEC and CFTC create a regulatory committee sponsored by the cryptocurrency industry.
Timothy Massad said that the current gaps in industry regulation could be filled if the US Securities and Exchange Commission (SEC) and the CFTC merge into a self-regulatory organization (SRO). He added that now “no agency has the authority” to regulate this sector.
“There is a gap regarding the regulation of what I would call the market for crypto assets that are not securities,” the former CFTC chairman said.
Massad noted that the CFTC has taken on the role of the main regulator of cryptocurrency, since now exchanges such as CME have active futures markets of bitcoin (BTC) and ether (ETH). Meanwhile, the SEC has taken action against crypto companies because it considers some digital assets to be securities.
According to Massad, who headed the CFTC for almost three years during the Obama administration, and now a research fellow at the Harvard University School of Government, the joint work of supervisory authorities on the basis of the SRO “can be a way to develop standards for the cryptocurrency market.”
The decision will prevent regulators from getting bogged down in the debate over whether to consider digital assets a security or a commodity. At the same time, the work of the committee, as in the case of other SROs, will be sponsored by a regulated industry.
Probably, the creation of another regulator will be negatively perceived by the cryptocurrency community and the US authorities. Moreover, recently the Agricultural Committee of the US House of Representatives introduced a bill that gives the CFTC the exclusive right to regulate transactions with cryptocurrencies.
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