{"id":504354,"date":"2022-10-28T05:12:50","date_gmt":"2022-10-28T02:12:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cftc-commissioner-compares-crypto-contagion-risk-to-2008-financial-crisis\/"},"modified":"2022-10-28T05:12:50","modified_gmt":"2022-10-28T02:12:50","slug":"cftc-commissioner-compares-crypto-contagion-risk-to-2008-financial-crisis","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cftc-commissioner-compares-crypto-contagion-risk-to-2008-financial-crisis\/","title":{"rendered":"# CFTC commissioner compares crypto contagion risk to 2008 financial crisis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3cc61e6ec8e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3cc61e6ec8e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cftc-commissioner-compares-crypto-contagion-risk-to-2008-financial-crisis\/#%E2%80%9D_CFTC_commissioner_compares_crypto_contagion_risk_to_2008_financial_crisis_%E2%80%9C\" >&#8221; CFTC commissioner compares crypto contagion risk to 2008 financial crisis &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CFTC_commissioner_compares_crypto_contagion_risk_to_2008_financial_crisis_%E2%80%9C\"><\/span>&#8221; CFTC commissioner compares crypto contagion risk to 2008 financial crisis &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvNTkzNDRmNGUtY2EwNS00NTcyLTk0N2QtZDcwOTNiMjQ0ZTAxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>Commodity Futures Trading Commission\u2019s (CFTC) Christy Goldsmith Romero has pointed to the collapse of the Terra ecosystem and its flow-on effects as an example of how contagion risks within crypto markets are similar to those experienced by the traditional financial (TradFi) system during the global financial crisis (GFC) of 2008.\u00a0<\/p>\n<p>Romero <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/oparomero3\">suggested<\/a> in a speech given at the International Swaps and Derivatives Association\u2019s (ISDA) Crypto Forum on Oct. 26 that increased links between crypto markets and TradFi increases the risk posed by crypto to overall financial stability, noting:<\/p>\n<blockquote><p>\u201cThe digital asset market remains relatively small and contained from the level of systemic risk that would come with greater scale or interconnections with the traditional financial system. But this may not be the case in the near future, particularly given growing interest by traditional finance.\u201d<\/p><\/blockquote>\n<p>One area of TradFi the commissioner would prefer to remain distant from crypto is retirement and pension funds, an opinion which has likely been influenced by recent events in the U.K. where pension fund issues required <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2022\/10\/06\/bank-of-england-says-pension-funds-were-hours-from-disaster-before-it-intervened.html\">intervention<\/a> from the Bank of England.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I have significant concerns about the possibility of pensions and retirement funds investing in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Cryptocurency?src=hash&amp;ref_src=twsrc%5Etfw\">#Cryptocurency<\/a><\/p>\n<p>\u2014 Commissioner Christy Goldsmith Romero (@CFTCcgr) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CFTCcgr\/status\/1585767879567638530?ref_src=twsrc%5Etfw\">October 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>While Romero cautions the U.S. not to rush regulations, she supports a \u201csame risk, same regulatory outcome\u201d <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach as the level of risk posed by the crypto industry increases, suggesting:<\/p>\n<blockquote><p>\u201cSimilar to post-crisis reforms, Congress can address financial stability risks by providing additional authority to the CFTC.\u201d<\/p><\/blockquote>\n<p>The GFC came about after banks began to lend recklessly to people without the means to fully pay back their mortgages. These \u2018subprime\u2019 mortgages were bundled together and sold as safe investment products before defaults started a ripple effect that spread across the world.<\/p>\n<p><strong>Related: <\/strong><strong><em>\u2018Secretly circulating\u2019 draft crypto bill could be a \u2018boon\u2019 to DeFi<\/em><\/strong><\/p>\n<p>While the CFTC is often regarded as the more crypto-friendly regulator compared to the Securities and Exchange Commission (SEC), it appears to be attempting to change that image as part of its bid to gain more regulatory oversight after revealing it instigated 18 enforcement actions on the sector throughout the 2022 fiscal year.<\/p>\n<p>One of the more recent CFTC actions was the fine levied at the Ooki DAO and its members, which was heavily criticized by a CFTC commissioner and members of the crypto community, who referred to it as \u201cblatant regulation by enforcement.\u201d <\/p>\n<p>Before this action, decentralized autonomous organizations (DAOs) were regarded by many advocates as being \u201cabove the law\u201d, and have resulted in the formation of legal entities within DAOs as a way to limit liability.<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/cftc-commissioner-compares-crypto-contagion-risk-to-2008-financial-crisis\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; CFTC commissioner compares crypto contagion risk to 2008 financial crisis &#8220; Commodity Futures Trading Commission\u2019s (CFTC) Christy Goldsmith Romero has pointed to the collapse of the Terra ecosystem and its flow-on effects as an example of how contagion risks within crypto markets are similar to those experienced by the traditional financial (TradFi) system during&#8230;<\/p>\n","protected":false},"author":1,"featured_media":504355,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvNTkzNDRmNGUtY2EwNS00NTcyLTk0N2QtZDcwOTNiMjQ0ZTAxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75044,75422,75186,74868,96725,74898,122378,117,73428,70934],"class_list":["post-504354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bank-of-england","tag-cftc","tag-dao","tag-defi","tag-press-release","tag-sec","tag-terra","tag-business","tag-pensions","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/504354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=504354"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/504354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/504355"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=504354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=504354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=504354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}