U.S. Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham recently addressed the debate over Treasury market regulation and the collaboration between the CFTC and the Securities and Exchange Commission (SEC) on cryptocurrency regulation.
In an interview with Bloomberg, Pham shed light on these important issues in his meeting with the presenter.
The interview began with a discussion of the impact of Treasury holdings on regional banks, particularly in March. Pham highlighted the need for reforms in the US Treasury market, focusing specifically on transparency and clearing.
He stressed that changes in cash markets will have a volatile effect on derivatives markets and it is crucial to approach market structure reforms thoughtfully to ensure access to centralized clearing and avoid negative effects on liquidity.
The conversation then shifted towards the tokenization of assets and the modernization of the financial market infrastructure. Pham highlighted the potential to tokenize real assets such as securities using blockchain technology.
Pham further emphasized that tokenization is not limited to cryptocurrencies, but covers various asset classes, including money market funds on the blockchain.
Regarding the regulation of the cryptocurrency market, Pham acknowledged the confusion regarding jurisdiction and highlighted the importance of collaborative efforts required among regulatory agencies.
He cited the progress made in defining regulations for tokenized securities and stated that he is participating in international and local working groups to develop a holistic approach to the regulation of the cryptocurrency industry.
Pham also pointed to recent court rulings that provide regulatory clarity on cryptocurrencies and said US regulators should work together.
*Not investment advice.