Self-regulatory organizations “form the first line of defense for regulating large, complex markets” that “can write their own rules as well as enforce SEC or CFTC rules,” he added. “If you want to see digital assets regulated, that almost certainly means developing one or more SROs.”
Marc Fagel, the SEC’s former regional director for San Francisco and now a lecturer at Stanford Law, offered a more cautious view of setting up SROs for a relatively young and still rapidly evolving industry.“
I’m curious how it would work,” he told Protocol. “With FINRA, you have long-standing broker-dealers whose legitimacy and financing are well established. How many players in the crypto space have the same bona fides such that the regulators are willing to delegate oversight authority?”
Source: Lummis-Gillibrand crypto bill would elevate CFTC – Protocol
