The CFTC under Caroline Pham is changing its regulatory approach to focus on fraud prevention.
New Approach to Regulation
In her recent announcement, Caroline Pham, acting chair of the CFTC, stated the agency would cease its practice of regulation by enforcement, which heavily impacted crypto firms during the Trump administration. The commission will divide its functions into two task forces, primarily focusing on retail fraud and Commodity Exchange Act violations, as well as complex fraud and manipulation.
Leadership Changes
This was one of Pham’s first major actions since taking over as acting chair on January 20, following Rostin Behnam’s retirement. It remains unclear whom President Donald Trump plans to nominate to fill Behnam’s CFTC chair after he steps down on February 7.
Changes in Other Agencies
Another US financial regulator, the Securities and Exchange Commission (SEC), announced on January 21 the formation of a crypto task force to develop a regulatory framework for digital assets, led by acting chair Mark Uyeda until the US Senate confirms new candidate Paul Atkins.
These changes in the regulatory approach by the CFTC and other agencies indicate a significant shift in their strategy towards cryptocurrencies and digital assets.
