The industry wants Congress to give all crypto regulation to the relatively weak and understaffed Commodity Futures Trading Commission. The CFTC regulates mainly futures and some financial derivatives in wholesale markets, but has no proven capacity to regulate the kind of retail transactions and small-investor abuses that are typical of crypto.
Shifting crypto regulation to the CFTC would change existing law for the worse. For now, the far stronger Securities and Exchange Commission is able to regulate most kinds of crypto under established law, on the reasonable premise that most crypto vehicles are securities.
There are a couple of rings to this circus, and they also include competition in Congress and the executive branch over turf. One involves a kind of crypto known as stablecoins. These are supposedly guaranteed to hold their value, except sometimes they don’t because they are not always backed by cash or cash equivalents.
‘Enforcement 40’ for 2020
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