Paul Atkins, leading the Securities and Exchange Commission (SEC), and Caroline Pham, the acting head of the Commodity Futures Trading Commission (CFTC), are pushing for greater cooperation between their two organizations. As part of a revised strategy to stimulate the growth of digital currencies across different markets, they’re also suggesting regulatory adjustments beneficial to the crypto sector.
In a shared declaration released on September 5th, both Atkins and Pham expressed their dedication to promoting “harmonization between US market regulators.” Within this official statement, Atkins and Pham emphasize that regulators must be adaptable and responsive considering the ongoing expansion and evolution of digital asset markets, along with the emergence of new financial products.
The document explains that the SEC and CFTC “must collaborate to prevent a regulatory vacuum arising from inactivity by either or both agencies.” They also suggest that the failure to do so has negatively impacted economic advancement, thereby inhibiting the complete maturation of digital asset markets.
Under the stewardship of Atkins and Pham, the agencies now commit to operating “in lockstep.” A portion of their joint statement proclaims “It is a new day at the SEC and the CFTC,” with the duo “reaffirm[ing] the need to ensure regulation does not stand in the way of progress.”
The agencies’ upcoming initiatives will center on certain focused actions. These include extending US trading hours to accommodate 24/7 market operations, delivering clearer guidelines for prediction and derivatives markets, preventing market participants from encountering conflicting collateral demands from both agencies, and exploring “innovative exemptions” for decentralized finance (DeFi) systems and peer-to-peer exchanges.
This joint declaration surfaces following Pham’s prior pledge that the CFTC would proactively address the regulation of digital assets. During a speech delivered on June 12th at the Coinbase Annual Summit, Pham stated that “there is no easy street for anybody” and regulators would deal strongly with those breaking the law in the crypto sphere. However, Pham also indicated the agency’s commitment to shifting away from the “regulation by enforcement” approach that has been used by US regulators so that a positive market environment can flourish.
Original report from Coinspeaker.com.