Congress must decide whether cryptocurrencies should be regulated as commodities or securities, according to Dawn Stump, former commissioner of the Commodity Futures Trading Commission.
Stump, who is now an adviser to crypto risk monitoring firm Solidus Labs, told CoinDesk TV’s “First Mover” show on Tuesday that the industry needs “transparent” rules.
“The reality is that there is no clear distinction between commodities and securities in crypto infrastructure and Congress may need to intervene,” Stump said.
Earlier this month, the Senate Agriculture Committee introduced a bipartisan bill that would give the CFTC “exclusive jurisdiction” to define what is and is not considered a “digital commodity.”
Stump’s comments come after major crypto firms including Celsius Network, Voyager Digital and Three Arrows Capital collapsed earlier this year. The problems at these companies could be an opportunity for government agencies to finally provide consistent oversight, Stump said.
“This market has reached a point where these kinds of principles should be applied consistently,” she said. However, that will depend on how regulators “define what records these companies need.”
It’s a gray area for the CFTC and the Securities and Exchange Commission, according to Stump, who said the goal of allocating collateral should be “more transparent and consistent” to give platforms “more confidence” about the agency with which they should register.
“What’s happening is not necessarily a power grab, but almost a desperate plea from the industry for clarity and what the regulatory expectations are,” Stump said.
Stump, however, added that the CFTC “still does not have a clear mandate or authority” over the regulation of digital assets such as bitcoin (BTC). “That’s where Congress will have to make a decision,” she said.
Read more: Former CFTC Commissioner Dawn Stump Joins Crypto Risk Watch Firm Solidus Labs as an Advisor
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