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TERRA COLLAPSE ILLUSTRATES THE NEED FOR MORE CLEAR AND STRICT REGULATIONS

TERRA COLLAPSE ILLUSTRATES THE NEED FOR MORE CLEAR AND STRICT REGULATIONS

Caroline Pham, who joined the Commodity Futures Trading Commission as commissioner in April, told Yahoo Finance regulators "failed" to protect the retail community due to uncertainty about the various financial regulatory powers.


"We have current regulations, in which each agency issues its own location," Pham said on May 31. "I really welcome Congress' efforts to provide a clear and comprehensive regulatory framework over crypto."


The CFTC has the authority to regulate the sale of foreign goods, as well as the authority to combat fraud and counter-fraud involving imports. But Pham said he welcomes legislation that will increase CFTC's power to regulate crypto space.


"Recently, U.S. bank regulators have publicly said they are looking at stable payment payments," Pham told Yahoo Finance. "But, frankly, most of the stable stablecoins now are used for trading purposes. And, without a doubt, if given the broad mandate of the CFTC, if something is not safe, then maybe something the CFTC has a controlling influence on. Points more."


Bipartisan bill in the U.S. House seeks to increase the CFTC's ability to regulate the sale of any coins or tokens that may be classified as securities (otherwise which may fall under the jurisdiction of the Securities and Exchange Commission). Currently, the CFTC has the sole authority to regulate derivatives - such as future cryptocurrency contracts - but not the local products themselves, including real crypto tokens.



Other agencies


There is a bulletin board for financial regulators all waiting for clarification on how to get into the police stablecoins framework. The SEC is still working on what digital finances and projects are coming into its own, but bank regulators such as the Federal Reserve, the Office of the Treasurer, and the Federal Deposit Insurance Corporation, have also jumped into the fray.


Another suggestion includes requiring stablecoin issuers independent to become banks or other licensed entities. Doing so would allow bank regulators to control and direct such projects by ensuring that their savings are strong enough to secure the American dollar anchor.


"This could improve the ability to integrate safely into the payment system," New York Fed Vice President Lorie Logan said on Thursday.


Finance Manager Michael Hsu told Yahoo Finance banks that they can work with stablecoins and other cryptocurrencies, as long as they do not endanger the security, soundness, and fairness of the banking system.

Source: yahoo



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