At the North American Blockchain Summit on November 21, CFTC Commissioner Summer Mersinger discussed the need for a standardized U.S. policy on cryptocurrency, through regulation based on notifications and public comments.
The CFTC has played its part in implementing the current strategy of “regulation through enforcement” alongside the SEC under the outgoing administration, as evidenced by recent charges against Uniswap Labs.
Mersinger also mentioned that a recent lawsuit against a decentralized autonomous organization (DAO) required the CFTC to seek a court ruling to classify the entity. In this case, the CFTC aimed to classify the DAO as a corporation or association.
“I was really uncomfortable with the idea that we are essentially setting policy through our enforcement cases and court proceedings. For me, how you are going to treat the entity is a policy question.”
Need for Regulated Exemption for the Crypto Industry
Mersinger stated that, while crypto organizations, including decentralized finance (DeFi), are often taxed under existing categories and must follow the same laws, there are no provisions for their official registration. She added:
“These are really complex agreements because the information we share publicly with our enforcement agreements doesn’t actually provide much guidance for those trying to do the right thing.”
As a result, Uniswap tried to act correctly but ended up attracting more accusations, Mersinger said. However, Uniswap agreed with the CFTC on a “very small fine.”
Despite being smaller compared to agencies like the SEC, Mersinger stated that the CFTC is “the perfect regulator for the spot crypto market,” as it can quickly make essential legislative changes without disrupting market operations.
New Laws Could Help Crypto Firms Tackle Unlawful Lawsuits
Moreover, she supported the introduction of new laws and rules for crypto firms, despite her generally conservative stance:
“Right now, we see that without these laws, you have agencies like the FCC that could come in and create chaos and file charges where it might be inappropriate.”
Mersinger also recommended that the crypto industry start engaging with the new administration once its leadership is established.
“Don’t be afraid to start knocking on doors on Day 1 because I think it’s critically important to begin those conversations early,” she said.
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