CFTC Commissioner: SEC-CFTC Crypto Jurisdiction Clash Stems from Lack of Clarity
CryptoNewsTerminal Staff22 May, 2024
CFTC Commissioner: SEC-CFTC Crypto Jurisdiction Clash Stems from Lack of Clarity
The ongoing tension between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over crypto regulation is largely due to a lack of regulatory clarity, according to Summer Mersinger, a Commissioner at the CFTC. In a recent interview with CoinDesk, Mersinger stated that the SEC's jurisdiction over cryptocurrencies remains uncertain. She noted that the SEC's current approach is "regulation by enforcement," which has led to uncertainty in the crypto industry. Mersinger suggested that a more comprehensive approach to crypto regulation is needed, potentially involving legislation from Congress or joint rule-making between the SEC and CFTC. She also emphasized the importance of clear definitions for blockchain and cryptocurrencies in order to provide clarity and guidance to the industry. Meanwhile, on Wednesday, the U.S. House voted to bring the "Financial Innovation and Technology Act of the 21st Century (FIT21 Act)" to the floor. The bill aims to establish regulatory definitions for blockchain and cryptocurrencies and give the SEC and CFTC authority to create a joint regulatory framework for the crypto sector.
