Two former regulators have made proposals for regulations on American cryptography infrastructure for years. Unfortunately, their pragmatic suggestions seem to fall into the ears of a deaf. Today, Timothy Massad, the former Democratic president of the Commodity Futures Trading Commission (CFTC) again provides testimonyThis time during a hearing of the Senate banking committee.
He and the former republican president of the dry Jay Clayton propose A joint self-regulation organization (SRO) controlled by the CFTC and the SEC at the end of 2022 after the collapse of the Crypto FTX exchange. One of their most important principles is that we do not have to decide if each crypto is a commodity. If a Bitcoin and Ether exchange platform, it is a cryptographic platform and is SRO with the rules applying to all its tokens. “The legislation that writes detailed rules that create a binary classification system will not miss,” said Massad.
The 236 -page clarity law proposed by the Chamber aims to do exactly this, with fear that it will undermine the existing regulations on securities, which are the much more important market foundation.
“Many believe that Congress must adopt a law with extremely detailed provisions precisely because the regulators have failed to develop appropriate rules and advice in the past four years,” Massad said in a written testimony.
“But it is like fighting the last war. We now have leadership in the dry and the CFTC which undertake to develop appropriate rules and advice. Although I do not agree with everything they do, I do not think that the Congress can do their work better.”
Massad would prefer to see the Congress give regulators the authority to supervise the cryptographic markets Spot for tokens which are not titles, which currently have no surveillance. In addition, it should provide principles to allow regulators to develop the rules together.
The Senate has not yet published its planned legislation on financial market infrastructure, but a series of Principles have been published by the banking committee last month. Meanwhile, the Clarity Act has progressed outside the committee stadium in the House.
