Golden Finance reported that Caroline Pham, the acting chairperson of the Commodity Futures Trading Commission (CFTC) of the United States, clearly stated at the Coinbase annual summit that even if the Trump administration shows a supportive attitude towards the cryptocurrency industry, regulatory agencies will not lower the industry’s compliance standards.
Pham emphasized that “supporting innovation does not mean condoning illegal activities.” The CFTC’s future regulatory focus will be on combating market fraud rather than simply “criminalizing” specific asset classes or technologies. She believes that with the wide application of encryption technology in the market, it is no longer realistic to adopt a complete ban. Regulators should, on the premise of ensuring the healthy development of the market, give innovation sufficient space.
At the same time, Pham criticized the regulatory approach during the Biden administration, pointing out that it had a tendency to “over-expand legal interpretation”. This regulatory tendency not only has an impact on the crypto market, but also affects the traditional derivatives and foreign exchange markets. In her view, reasonable regulation should be more precise and moderate to avoid suppressing the innovation vitality of the industry due to excessive regulation.
The Trump administration has repeatedly sent out friendly signals towards the cryptocurrency industry, proposing to create a clear regulatory framework to help the United States lead the future of cryptocurrencies. Against this backdrop, Pham’s remarks this time indicate that while the CFTC supports the development of the industry, it will still adhere to the regulatory bottom line to ensure that the cryptocurrency market operates on a compliant track. The clarity of its regulatory approach also provides a clearer expectation for participants in the cryptocurrency industry. How the CFTC will implement its regulatory priorities in the future is worth the market’s continuous attention.
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