Caroline Pham, a commissioner at the US Commodity Futures Trading Commission (CFTC), has voiced support for the introduction of a limited pilot program aimed at addressing cryptocurrency regulation. She made this statement during a pre-recorded message for a Cato Institute event on September 7. Pham intends to propose a digital asset market pilot program following a public roundtable discussion. She emphasized the necessity for the United States to "catch up" with crypto-friendly jurisdictions and suggested that the program would resemble regulatory sandboxes previously implemented at the state level.
Pham explained that the pilot program would establish a framework for emerging technologies and market structures within the bounds of existing laws and regulations. She anticipates that this initiative will facilitate testing, data collection, and the development of a practical approach to tokenization while upholding the CFTC's mission to foster open, transparent, competitive, and financially sound markets. Pham called for a stakeholder roundtable and proposed that the CFTC formulate and implement rules regarding cryptocurrency risks, drawing from past pilot programs. At the conclusion of the program, the committee will decide whether to make these changes permanent.
Caroline Pham, who has been serving as one of the CFTC's five commissioners since April 2022, has consistently advocated for greater transparency in cryptocurrency regulation. Alongside her sponsorship of the council's Global Markets Advisory Council, she has championed initiatives designed to protect retail investors in the cryptocurrency space. This proposed pilot program comes in the wake of efforts by US lawmakers to clarify the roles of the CFTC and the Securities and Exchange Commission (SEC) in cryptocurrency regulation. In July, the House Financial Services Committee approved the 21st Century Financial Innovation and Technology Act, which could potentially proceed to a full House vote by 2024.
