Friday, the US Commodity Futures Trading Commission (CFTC) withdrew two coins related to the personnel linked to cryptography, more rationalizing its approach to cryptographic regulation.
The first opinion canceled on Friday was the opinion of staff n ° 18-14, Consultation with regard to lists of products derived from virtual currencies. Originally published in May 2018, the Council established guidelines for derivatives linked to the crypto, in particular by forcing companies to maintain a “close coordination with [the] CFTC surveillance group ”and establishing a large trainer’s reporting threshold of five bitcoins (or equivalent value for other cryptocurrencies), among other suggestions. On Friday, the CFTC published a letter indicating that “the experience of additional staff” and “the increase in market growth” had rendered unnecessary advice.
The second opinion, Advisory of staff n ° 23-07, Examination of the risks associated with the expansion of DCO compensation for digital assetsFrom May 2023, “emphasize[d] Compliance “to CFTC regulations due to” cyber and other operational risks that can be associated with digital assets “. This orientation was removed for another reason – to clearly treat the derivatives linked to cryptography and their transmitters, the CFTC suggested Friday in a separate letter, the CFTC said that it cancels the staff advice n ° 23-07 “to ensure that it does not suggest that its regulatory treatment of digital active derivatives vary from its treatment of products.”
The CFTC sister regulation agency, the Securities and Exchange Commission of the United States, revised its approach to cryptographic regulations since President Donald Trump took office in January. Under the new management of the acting president, Mark Uyeda, the SEC has created a crypto working group which led its transformation, engaging with industry and withdrawing a multitude of prosecution and surveys on cryptographic companies that started under the direction of former President Gary Gensler.
Although the rapid transformation of the dry can be more flashy, the CFTC is currently undergoing a transformation of its own, rationalizing its regulatory strategy as part of the interim chair plan, Caroline Pham, for the agency “Come back to the base”. In addition to the two guidance documents linked to the crypto, the agency has canceled other personnel advice not linked to the crypto and revised its application division, reducing a multitude of specialized application teams for two, by preparing that a simplified application division would be more effective and “to stop the regulations by the infections”.
Liz Davis, a partner based in Washington, DC in Davis Wright Tremaine LLP, and former chief lawyer for the CFTC application division, told Coindesk that she sees the two cryptographic guide pieces canceled according to Pham’s “Back To Basics” approach to manage the agency.
But Davis also suggested that changes could be linked to greater restructuring in the CFTC.
“They probably undergo a reorganization with everything that is happening with [the Department of Government Efficiency (DOGE)]”Said Davis, adding that PHAM’s continuous efforts to” centralize “CFTC operations could help facilitate reorganization.
