30s Summary

The US Commodity Futures Trading Commission (CFTC) is working with the Securities and Exchange Commission on cryptocurrency regulation coherence, under specific spotlight since President Biden took office. Speaking at the North American Blockchain Summit, CFTC Commissioner Summer Mersinger called for clearer guidelines for crypto businesses registration, highlighting issues with lack of such guidelines. Mersinger supported the creation of new laws for crypto firms, despite her conservative stance, and urged the crypto sector to engage with the new administration early.

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The United States Commodity Futures Trading Commission (CFTC) has been working closely with the Securities and Exchange Commission in the handling of cryptocurrency regulations. This has been particularly noticeable during President Joe Biden’s term. A recent action against Uniswap Labs is a clear example of this.

During the North American Blockchain Summit on Nov. 21, CFTC Commissioner Summer Mersinger, spoke about the need for better and more transparent regulations for crypto. She shared her thoughts on how past litigation against a decentralized autonomous organization (DAO) essentially forced the CFTC to decide if this type of entity could be labeled as a company or association. She said this left her feeling uneasy about setting a precedent with this kind of case.

Mersinger voiced her thoughts on what she sees as a need for clearer guidelines and provisions for crypto entities, including decentralized finance (DeFi), to properly register. She notes that while these entities often operate under existing laws, the lack of specific guidance can be problematic for those trying to stay above board.

This lack of clear direction has resulted in situations like Uniswap’s where they attempted to do the right thing, but ended up attracting more charges. Despite this, they managed to settle with the CFTC for a surprisingly small fine.

Mersinger feels that although the CFTC is small compared to other regulatory bodies like the SEC, it’s well suited to handle cryptocurrency regulations. She believes the CFTC can make necessary legal adjustments quickly and without causing market disruptions.

Mersinger also backs the creation of new laws and regulations for crypto firms, even though she typically takes a conservative stance. She believes without these laws, other agencies can step in, create confusion, and potentially bring charges where they might not be appropriate.

Finally, she encouraged those in the crypto industry to begin talking with the newly elected administration as soon as they take office. She emphasized the importance of starting these conversations early.