Global regulators and investors are closely monitoring the ongoing collapse of the cryptocurrency market. In the meantime, CFTC’s Commissioner Christy Goldsmith Romero in an event mentioned that the Government needs to close in the space over digital asset regulations.
More clarity needed over crypto regulations
Speaking at an Axios event, CFTC head Romero highlighted that there is a need for clarity over crypto laws and regulations. This will lead to more consumer protection while it will also support the Crypto industry to evolve.
Meanwhile, the event was has held amid the crashing crypto market. The industry saw a massive sell off since the beginning of this month. As per Coingecko, the cumulative digital asset market has dropped by around 10% in the last 24 hours. It now stands at $901 billion. As per the report, the Commissioner noted two major similarities between the current market situation and the 2008 financial crisis.
Romero mentioned that there is a very large unregulated market where regulators don’t have any window. She added the current market has become correlated with the equity market. However, she mentioned the biggest concern right now is client protection.
Will crypto bill help CFTC?
According to the report, Romero mentioned that “CFTC doesn’t have any authority over the regulations”. The agency cannot check books and records nor they can examine any digital assets companies and trading on the spot market.
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However, last week, Senator Cynthia Lummis and Kirsten Gillibrand proposed a regulation draft over cryptocurrency. The proposed bill aims to treat crypto transactions under $200 as tax free. While it also seeks to set up an advisory committee to support the key regulators. It added that agencies like CFTC should also be taken under consideration over digital assets related regulations. As of now, US Securities and Exchange Commission is the only watchdog keeping an eye on crypto based issues.
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