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- The primary goal of the pilot program is to test and collect data and develop a pragmatic approach to tokenization.
- The final decision on whether or not to implement any changes will be made by the committee after the end of the programme.
CFTC Commissioner Caroline Pham has proposed a limited pilot program to address crypto regulation in the United States. Pham. Pham marked the need for the US to catch up with crypto-friendly jurisdictions.
Pham’s proposal includes holding public roundtables to gather input and insights from crypto industry stakeholders. She plans to use this feedback to design a pilot program specifically tailored to the digital asset markets.
Further, Pham drew parallels with regulatory sandboxes implemented at the state level. She also stressed the importance of creating a framework for emerging technologies and market structures within the existing legal and regulatory framework.
The pilot program aims to address crypto regulatory challenges
The primary goal of the pilot program is to test and collect data and develop a pragmatic approach to tokenization. Pham believes this approach will help maintain the CFTC’s mandate to promote open, transparent, competitive and financially sound markets.
In addition, Pham’s proposal includes the organization of a stakeholder round table to facilitate discussion and collaboration between various industry participants.
She has called on the CFTC to propose and adopt rules regarding the risks associated with crypto, based on insights gained through previous pilot programs.
The final decision on whether or not to make changes to the regulations will be taken by the committee after the pilot program has ended.
Caroline Pham has been a Commissioner of the CFTC since April 2022. During her tenure she has been consistent advocated for greater clarity and regulatory oversight in the crypto industry. She has that too sponsored initiatives within the committee, such as the Global Markets Advisory Committee.
Biden administration and crypto regulation
Recently Ripple [XRP] co-founder Chris Larsen criticized the Biden administration for pushing the crypto industry out of the United States to offshore locations such as Singapore, Dubai and London due to unclear regulations.
Larsen also expressed dissatisfaction with SEC Chairman Gary Gensler’s “regulation by enforcement” approach. He called for clear and comprehensive crypto regulations put in place by legislators to provide much-needed clarity to the industry.
In July, the House Financial Services Committee approved the Financial Innovation and Technology for the 21st Century Act, which signals progress in the regulatory landscape.
This bill aims to provide a comprehensive framework for regulating digital assets and could be voted on by the entire House. It could potentially have an impact on crypto regulation before 2024.