CFTC Can Regulate Crypto Without New Laws, Caroline Pham Says as US Rules Evolve

Former acting chairman of the Commodity Futures Trading Commission Caroline Pham says Washington does not need to pass new laws regulating digital assets. Caroline Pham spoke at TOKEN2049 Singapore about the Commodity Exchange Act.

Her statements follow proposed CFTC rules for retail crypto derivatives trading released on October 5. Proposed legislation related to crypto, the CLARITY Act, stalled in September.

Why Existing CFTC Authority Matters for Crypto

Pham said that the broad commodity definition in the law includes electronic goods and other new products. Onions and movie tickets are two products specifically exempt from the law. Pham also said artificial intelligence computer products may be included.

There are limits to commodity classification; even if the underlying is classified as a commodity, not all futures contracts involving that underlying are regulated by the CFTC. Other regulated activities and investment-related scams affect consumers.

Current CFTC chair Michael Selig also pointed out differences between authorities granted by current law and those that would require new legislation. Congress could enact a law requiring all exchanges to register, although existing laws may regulate some current retail market participants.