Better Markets says CFTC is ‘wrong agency’ to regulate retail crypto
Better Markets says the US derivatives regulators push to develop rules for certain retail crypto transactions could leave investors with weaker safeguards, arguing the agency is ill-equipped to oversee the market. The Commodity Futures Trading Commission on Monday sought public comment on a potential framework for margined, leveraged or financed retail crypto transactions under its existing authority. Benjamin Schiffrin, director of securities policy at Better Markets, a nonprofit financial reform advocacy group, argued that CFTC oversight is less suited than the SEC to protecting retail investors. “Unlike the SEC, the CFTC lacks an investor protection mandate. Its mission is to regulate the commodity and derivatives markets, which historically have been dominated by large institutions with very little retail investor participation,” said Schiffrin. “Because the CFTCs rules lack the protections that apply when investors trade securities regulated by the SEC, the CFTC is the wrong agency to regulate transactions involving crypto assets by retail customers,” he added. Better Markets criticism comes as the CFTC and SEC move ahead with crypto policy under existing law after the CLARITY Act stalled in Congress. Both agencies had previously signaled they were prepared to act without new legislation. Better Markets questions “crypto capital” goal Better Markets also challenged the CFTCs claim
