CFTC commissioner calls for urgent reforms in US crypto policy

At the North American Blockchain Summit, CFTC Commissioner Summer Mersinger called for clear rules for the crypto industry, saying current enforcement actions create confusion and uncertainty.

At the North American Blockchain Summit on November 21, CFTC Commissioner Summer Mersinger stressed the urgent need for clear and standardized cryptocurrency regulations in the United States. She explained that the current system mainly uses enforcement actions, which makes it confusing and uncertain for crypto companies to understand and follow the rules.

Call for clear crypto regulations

As CFTC had to rely on a court decision to decide if a DAO should be treated as a corporation or an association, which she said is not a practical way to deal with such matters.

Mersinger said, “regulation by enforcement” strategy was adopted by the CFTC and SEC in recent times. She used the recent charges against Uniswap Labs to illustrate. Without established policies, regulators often resort to lawsuits to categorize entities like decentralized autonomous organizations (DAOs).

Mersinger mentioned that Uniswap paid a small fine to settle with the CFTC, which could indicate a more flexible approach from regulators. However, she stressed that clear laws are needed to help crypto companies to stay out of legal trouble and know exactly what they need to do to follow the rules.

This approach needs to change. She thinks decisions about how an entity is treated should come from clear rules, created through proper discussions and public input, not from court rulings.

The Role of the CFTC

Thus, CFTC may be smaller than the SEC, but Mersinger argued that the CFTC is well equipped to oversee the cryptocurrency spot market. She believes the agency can implement meaningful legislative changes and with minimal disruption to the market.

She added “Don’t hesitate to start knocking on doors from day one,” highlighting the importance of open communication between the industry and policymakers.

That, Mersinger wants clear rules and public input in the process to make regulations easier to understand and follow for the growing crypto industry.

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