CFTC Calls for Clear Crypto Regulations and Legislative Change

At the North American Blockchain Summit on November 21, CFTC Commissioner Summer Mersinger emphasized the need for clear and standardized crypto regulations in the U.S.

She criticized the current “regulation by enforcement” approach, which has been implemented by the Commodity Futures Trading Commission (CFTC) and the SEC under the previous administration. Mersinger pointed to recent cases, such as the CFTC’s litigation against Uniswap Labs, as examples of how unclear policies are being shaped through legal actions instead of official rulemaking.

Mersinger also discussed a case involving a decentralized autonomous organization (DAO), where the CFTC had to seek a court decision to classify it as either a corporation or an association. She expressed discomfort with the practice of setting policy through enforcement actions, calling it problematic because the classification of entities is a policy decision.

She noted that many crypto entities, particularly in decentralized finance (DeFi), are being forced to comply with existing regulations, even though there are no formal provisions for them to be registered or to operate under such frameworks. Mersinger highlighted that the lack of clear guidelines from enforcement settlements leaves many in the industry unsure of how to comply.

Mersinger suggested that the CFTC, despite being smaller than the SEC, is better positioned to regulate the cryptocurrency spot market due to its ability to swiftly implement legislative changes without causing major disruptions. She advocated for new laws to provide clarity and to protect crypto firms from undue litigation. Mersinger also recommended that the crypto industry begin engaging with the new administration as soon as possible to ensure its concerns are addressed early on.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.