Caroline Pham of the Commodity Futures Trading Commission (CFTC) has recommended the establishment of a “Individual Advocacy Office” aimed at expanding the CFTC’s consumer protection mandate.
Pham is hosted by blockchain project Corda on Tuesday, September 27. in his speech at the event He referred to the office in question as the “voice of the people,” noting that recent events in crypto have pushed it into a more urgent situation for the protection of individual investors, adding:
“Crypto crashes, risk management failures, and significant individual losses create an urgency in the need to balance innovation with protection of individual investors and appropriate regulation.”
Pham stated that he modeled the office on the basis of the US Securities and Exchange Commission’s (SEC) “Investor Advocacy Office” and that it was a “tried and true path”.
Caroline Pham stated that the SEC has four primary missions: services such as giving investors a say in setting a particular policy, helping individual investors solve their problems with the SEC or self-regulatory bodies, supporting advisory committees, examining investor behavior, and conducting research and economic analysis. announced it was to present.
However, Pham highlighted the potential of digital assets and blockchains to transform existing markets with “ten key principles for responsible digital asset markets”:
“It may be early yet, but if we can achieve stability and scalability in blockchain no matter what layer 1, 2 or next, promising use cases will emerge.”
These principles also include primarily determining whether something is a security, mitigating systemic risks such as successive liquidations due to the Terra collapse, protecting retail customers and the public, ensuring transparency, and addressing conflicts of interest.
The aforementioned proposal by Caroline Pham marks the CFTC’s latest attempt in a broader effort to increase its authority over crypto markets. The proposal, however, came shortly after calls from the community and from US lawmakers seeking clarity on crypto legislation.
The CFTC has recently come under criticism for its “sanctioned regulation” over the Ooki DAO case, and the community has compared regulation to enforcement tactics seen as the SEC’s handling of its ongoing litigation with Ripple.
Finally, Pham stated that these views are entirely his own and need not be shared by the CFTC or other commissioners.