One prevailing argument supporting cryptocurrency’s growth hinges on the expectation of lighter regulation under a Trump administration.
While this might hold some truth compared to a Biden administration, crypto enthusiasts should not assume regulators will passively allow shady practices to run rampant.
Speaking at the Coinbase (COIN) Annual Summit on Thursday, acting Commodity Futures Trading Commission (CFTC) chair Caroline Pham told Yahoo Finance, “There are no free passes, and regulators are vigilant. Being pro-innovation and pro-growth doesn’t mean anyone can flout the law without consequences.” (Watch the interview above.)
“I’m emphasizing the importance of not manipulating laws to unfairly target an asset class or technology, but rather focusing on addressing issues like fraud, deception, and theft,” she explained.
Pham assumed the role of acting CFTC chair on January 20, 2025. She originally joined the CFTC as a commissioner on April 14, 2022.
The CFTC, though relatively small, wields significant influence as it oversees the derivatives market, which involves trillions of dollars. Derivatives are used by businesses to protect against price fluctuations in commodities such as coffee and currencies.
Legislative progress toward regulating the crypto market may be imminent. The CFTC could be tasked with overseeing spot markets for Bitcoin and other digital assets not classified as securities.
The CFTC is also actively working to curb the expansion of speculative betting markets. Companies like Robinhood (HOOD) and Kalshi view these markets, allowing bets on events like presidential elections and sporting events, as potential avenues for future expansion.
A possible shift towards less restrictive CFTC regulation could be influenced by Brian Quintenz, head of crypto policy at a16z.
With Pham and commissioner Kristin Johnson both planning to leave the CFTC, Quintenz could temporarily become the sole commissioner if his Senate approval is secured.
“His record as a commissioner is clear and speaks for itself, and I anticipate positive developments,” said Pham, formerly a managing director at Citi. She added that her future career plans are still under consideration.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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