{"id":540743,"date":"2023-01-19T06:15:14","date_gmt":"2023-01-19T03:15:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cftc-commissioner-crypto-exchanges-shouldnt-self-certify-tokens\/"},"modified":"2023-01-19T06:15:14","modified_gmt":"2023-01-19T03:15:14","slug":"cftc-commissioner-crypto-exchanges-shouldnt-self-certify-tokens","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cftc-commissioner-crypto-exchanges-shouldnt-self-certify-tokens\/","title":{"rendered":"# CFTC commissioner: Crypto exchanges shouldn&#8217;t &#8216;self-certify&#8217; tokens"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a2896dacd8a7\" 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-6a2896dacd8a7\" 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-crypto-exchanges-shouldnt-self-certify-tokens\/#%E2%80%9D_CFTC_commissioner_Crypto_exchanges_shouldnt_%E2%80%98self-certify_tokens_%E2%80%9C\" >&#8221; CFTC commissioner: Crypto exchanges shouldn&#8217;t &#8216;self-certify&#8217; tokens &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cftc-commissioner-crypto-exchanges-shouldnt-self-certify-tokens\/#Crypto_%E2%80%98gatekeepers_need_to_%E2%80%98step_up\" >Crypto \u2018gatekeepers\u2019 need to \u2018step up\u2019<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CFTC_commissioner_Crypto_exchanges_shouldnt_%E2%80%98self-certify_tokens_%E2%80%9C\"><\/span>&#8221; CFTC commissioner: Crypto exchanges shouldn&#8217;t &#8216;self-certify&#8217; tokens &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>A commissioner from the Commodity Futures Trading Commission (CFTC) has called on Congress to stop allowing cryptocurrency exchanges to \u201cself-certify\u201d and list tokens without oversight.<\/p>\n<p>CFTC commissioner Christy Goldsmith Romero told an audience at a Jan. 18 University of Pennsylvania event focused on FTX that the current process wasn&#8217;t adequate to ensure proper oversight,\u00a0saying:<\/p>\n<blockquote><p>\u201cI urge Congress to avoid permitting newly-regulated crypto exchanges to self-certify products for listing, under the current process that limits CFTC oversight.&#8221;<\/p><\/blockquote>\n<p>&#8220;It is critical to institute guardrails against regulatory arbitrage, and that includes prohibiting the use of the self-certification process,&#8221; she added.<\/p>\n<p>Currently, crypto exchanges can \u201cself-certify\u201d their product&#8217;s safety before listing unless the CFTC blocks the listing within 24 hours.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/1a31f59e-15bb-4747-af4a-39d6730b4247.jpg\"><figcaption style=\"text-align: center;\"><em>CFTC Commissioner Christy Goldsmith Romero Source: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/cftccgr\/status\/1522666490733989889\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>She said this process used to list products such as crypto futures isn\u2019t adequate for that type of asset.<\/p>\n<p>Goldsmith Romero added crypto businesses looking to issue tokens could use the CFTC\u2019s crypto regulatory framework to circumvent registration with the Securities and Exchange Commission (SEC).<\/p>\n<p>Proposals to give the CFTC an increased role in oversight of the crypto industry were introduced to Congress in 2022.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_%E2%80%98gatekeepers_need_to_%E2%80%98step_up\"><\/span>Crypto \u2018gatekeepers\u2019 need to \u2018step up\u2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>During her speech, the commissioner also called on lawyers, compliance professionals, celebrities, venture capital firms and pension fund investors to conduct better due diligence on crypto firms. <\/p>\n<blockquote><p>\u201cGatekeepers themselves also need to step up, and call for compliance, controls, and other governance, without allowing the promise of riches and the company\u2019s marketing pitch to silence their objections to obvious deficiencies.\u201d<\/p><\/blockquote>\n<p>Remarking on FTX, which declared bankruptcy in November 2022 after mishandling and misplacing customer funds, Goldsmith Romero said these entities \u201cshould have seriously questioned the operational environment at FTX in the lead-up to its meltdown.\u201d<\/p>\n<p>\u201cIf the digital asset industry wants to regain any amount of public trust, it has some work to do,\u201d she added. <\/p>\n<p>Some crypto industry observers have continued to argue that the circumstances behind FTX&#8217;s collapse should not be pegged to the digital asset space or a lack of regulation.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Digital Dollar Project urges US to take action on CBDC development<\/em><\/strong><\/p>\n<p>SEBA Hong Kong&#8217;s managing director Ludovic Shum told Cointelegraph during an interview this week that the fall of FTX could have easily h<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>ened in any other industry.\u00a0<\/p>\n<p>&#8220;At the end of the day, it goes back to the trust regarding the checks and balances [&#8230;] It was just unfortunate that it happened in this fast-growing area of the crypto world where it could have easily happened to banks, securities, houses, asset managers,&#8221; said Shum.<\/p>\n<p>Meanwhile, Lachlan Feeney, Founder and CEO of blockchain development agency\u00a0Labrys said the industry needs more oversight, not necessarily regulation to prevent another disaster.<\/p>\n<blockquote><p>&#8220;The FTX scandal didn\u2019t happen because of a lack of regulation. FTX operated [allegedly] illegally; disregarding the existing regulations rather than capitalizing on an absence of regulation.&#8221;<\/p><\/blockquote>\n<p>&#8220;There should probably be more oversight to stop unscrupulous players and activity before situations escalate, but we don\u2019t need masses of new regulation and red tape that deters innovation. We need clarity on the existing regulations,&#8221; he said in a statement to Cointelegraph.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\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-crypto-exchanges-shouldn-t-self-certify-tokens\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; CFTC commissioner: Crypto exchanges shouldn&#8217;t &#8216;self-certify&#8217; tokens &#8220; A commissioner from the Commodity Futures Trading Commission (CFTC) has called on Congress to stop allowing cryptocurrency exchanges to \u201cself-certify\u201d and list tokens without oversight. CFTC commissioner Christy Goldsmith Romero told an audience at a Jan. 18 University of Pennsylvania event focused on FTX that the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":540744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/bc426af8-b7ef-411d-968b-5be1b79f51b2.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75422,74860,74892,70934,67874],"class_list":["post-540743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cftc","tag-cryptocurrency-exchange","tag-tokens","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540743","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=540743"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/540743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/540744"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=540743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=540743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=540743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}