At the FIA Law and Compliance conference, Commodity Futures Trading Commission (CFTC) representatives spoke about close cooperation with the Securities and Exchange Commission (SEC).
CFTC representatives Brian Quintens and Rostin Behnam took the stage, raising the issue of cryptocurrency regulation.
Brian Quintens focused on fraud related to virtual currencies, reminding the audience that the SEC and the CFTC had already cooperated earlier, bringing cases against crypto-exchange scam companies My Big Coin and CabbageTech.
Rostin Behnam expressed concern that cryptocurrencies could become a threat to financial stability in the foreseeable future, calling on market participants to work together and seek regulatory solutions.
Brian Quinten’s key points:
- The CFTC needs to interact with the SEC to "ensure that differences in product nomenclature do not enable bad actors to slip through jurisdictional cracks."
- The CFTC has formed task force "to prosecute fraud in this evolving asset class."
Rostin Behnam’s key points:
- Regulators who often "scurry to keep pace with swift innovations" need to act before potential threats become reality.
- Regulation should "reflect an understanding of FinTech and address the concerns and needs of all stakeholders."
- It is difficult for everyone involved in the cryptocurrency industry to create their own regulation, as "their motives may be too focused on supporting industry growth."
By Ekaterina Ulyanova