CFTC Commissioner Caroline Pham outlines a “time-limited” program to kick start regulated crypto markets and tokenization.
During the Cato Institute event on Sept. 7, Caroline Pham said that following public roundtable discussions, she planned to propose a pilot program for digital asset markets.
She recommended a time-limited CFTC pilot program to support the development of compliant digital asset markets and tokenization.
After gathering ideas from a round table, she proposed that the agency should set up a program for a specific period of time that incorporates many of the components drawn from past pilot programs, including: registration and eligibility requirements, financial resources and other conditions, risk management, products and contract terms, and other requirements, including disclosures and reporting.”
A pilot program can create a framework for emerging technologies and market structures under our existing laws and regulations,” said Pham. “It is my hope that a pilot to test, gather data, and develop a pragmatic approach to tokenization can ensure we continue to uphold our mandate to fostering open, transparent, competitive, and financially sound markets.
She claimed that the U.S. may soon need to “play catch-up” to crypto-friendly jurisdictions and suggested that the program would be similar to regulatory sandboxes previously introduced at the state level.