The Commissioner of the Commodity Futures Trading Commission (CTFC) says immediate regulatory actions are needed to safeguard crypto traders after Terra (LUNA) and its stablecoin TerraUSD (UST) collapsed in early May.
In a new interview with Yahoo! Finance, Caroline Pham says it’s important to enact a regulatory framework that would shield retail crypto investors from incurring the types of losses they did when LUNA and UST disintegrated.
“It’s so clear with the blow-up in Terra and the knock-on effects of the broader crypto markets that regulators really cannot fail to act any longer to do something to make sure that we’re protecting the retail public especially when you’ve had billions of dollars in value destroyed…
We really need to call for public roundtables to examine what exactly happened, get the input and the expertise of the public on how we do responsible and pragmatic crypto regulations so that way, this doesn’t happen again in the future.”
Earlier this month, Terra and its affiliated stablecoin UST wiped out a combined $60 billion in market capitalization.
Pham goes on to say that regulating stablecoins and other non-security assets could be well within the purview of the CFTC.
“A lot of the stablecoins that are out there right now are being used for trading purposes and frankly, given the CTFC’s broad jurisdiction, if something is not a security, then it’s probably something the CTFC has regulatory touchpoints over.
That’s why you’ve got a lot of the discussion right now looking at how not only the CFTC regulating the commodity derivatives markets but how we currently regulate the spot markets and how we can extend that jurisdiction over the spot markets.”
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