CFTC Commissioner Believes In Creating A Self-Regulatory Crypto Structure

The United States Commodity and Futures Trading Commission (CFTC) Commissioner Brian Quintenz is in today’s crypto news after he suggested that all of the crypto industry participants should create a self-regulatory organization of some kind while he was speaking on the Bipartisan Policy Center Panel a week ago.

To be more precise, Quintenz explained that CFTC has a lack of crypto statutory oversight and therefore suggested that all of the crypto platforms should form a type or an organization of some sort that will be self-regulatory where all of the participants can discuss, agree or disagree to implement rules or to audit.

According to the commissioner, he believes that an organization of that type could carry out the audits concerning conflicts of interest, insider trading, custody, liquidity and business conduct. However, the CFTC commissioner also says that a self-regulatory organization is charted by Congress and saying that the organization would only be a mutual association between private companies in the crypto industry.

A commissioner from the Securities and Exchange Commission, on the other hand, Hester Peirce, was also attending the panel and explained how confusing the current regulation is right now. Peirce said that the lack of regulation of the crypto market and especially bitcoin could be a reason not to approve a BTC ETF:

 “There are lots of markets that aren’t regulated, but we nevertheless build [derivative] products on top of them.”

Hester Peirce also pointed out that the delay in creating a crypto regulatory framework could mean more freedom for the industry to continue on its own.