New regulation for Bitcoin and Stablecoins
They have argued that the United States could lose its role as leader of the financial system to other countries more open to cryptospace.A new approach is needed to adapt to rapidly changing markets and investor requirements. Heath Tarbert, president of the CFTC, made his remarks at a seminar for Harvard’s Kennedy School. The focus was on the regulator’s approach and its role in the market. He referred to an issue that the crypto-community has long been calling for: a strong and clear regulatory legal framework.
For the representative of the body, it is necessary to establish a system that can adapt to the rapid changes in the markets. Tarbert said that the current system has limitations. A new approach based more on principles than fixed rules would allow the CFTC and the United States to maintain their position as the leader of the financial system.
The president of the CFTC clarified that the principles-based approach is now appropriate for regulating digital assets. However, he said that long-term rules could be established when the market has matured.
The regulator said that, unlike regulations based on fixed rules, the principles can be understood by everyone in a short time. Despite this, he was unable to clarify which fixed principles apply to cryptocurrencies. He said that the regulatory body still deliberates on this aspect.
In a round of questions, the president of the CFTC spoke about the main concerns and problems they see in the cryptomarket. He stated that there are two main problems at the moment.The first relates to money laundering. For Tarbert it is important that all exchanges of cryptocurrencies associated with the CFTC follow the laws that prevent this crime. He added that poor regulation only makes the cryptomarket more vulnerable.
Author : Reynaldo