{"id":544170,"date":"2023-01-27T04:47:04","date_gmt":"2023-01-27T01:47:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cftcs-johnson-urges-congress-for-expanded-powers-in-crypto-oversight\/"},"modified":"2023-01-27T04:47:04","modified_gmt":"2023-01-27T01:47:04","slug":"cftcs-johnson-urges-congress-for-expanded-powers-in-crypto-oversight","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cftcs-johnson-urges-congress-for-expanded-powers-in-crypto-oversight\/","title":{"rendered":"# CFTC&#8217;s Johnson urges Congress for expanded powers in crypto oversight"},"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-6a25b747dc24e\" 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-6a25b747dc24e\" 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\/cftcs-johnson-urges-congress-for-expanded-powers-in-crypto-oversight\/#%E2%80%9D_CFTCs_Johnson_urges_Congress_for_expanded_powers_in_crypto_oversight_%E2%80%9C\" >&#8221; CFTC&#8217;s Johnson urges Congress for expanded powers in crypto oversight &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CFTCs_Johnson_urges_Congress_for_expanded_powers_in_crypto_oversight_%E2%80%9C\"><\/span>&#8221; CFTC&#8217;s Johnson urges Congress for expanded powers in crypto oversight &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson has urged Congress to adopt legislation that &#8220;closes the current gap in the oversight of crypto spot markets.&#8221;<\/p>\n<p>During a speech at the digital assets conference at Duke University on Jan. 21, Johnson\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/opajohnson2\">propose<\/a><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/opajohnson2\">d<\/a> a number of amendments that would enable the CFTC to conduct \u201ceffective due diligence\u201d on businesses, including crypto firms, that want to acquire CFTC-regulated entities.<\/p>\n<p>The Commissioner also wants expanded powers for the commodities regulator to enhance customer protection, prevent liquidity crises, and mitigate conflicts of interest.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/cb5219d8-f087-4655-a377-4401413a44ce.png\"><figcaption style=\"text-align: center;\"><em>CFTC Commissioner Kristin Johnson. Source: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">YouTube<\/a><\/em><\/figcaption><\/figure>\n<p>One of these potential changes would be to give the commodities regulator new powers to investigate any business that wants to purchase 10% or more of a CFTC-registered exchange or clearinghouse.<\/p>\n<p>Johnson highlighted the example of derivatives exchange LedgerX, which became a subsidiary of FTX on Aug. 31, 2021 \u2014 and is now wr<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>ed up in the crypto exchange\u2019s collapse.<\/p>\n<p>The Commissioner notes that the regulator currently has no ability to conduct due diligence on whichever firm buys the business, and is merely a passenger as the exchange goes through the sales process.<\/p>\n<p>Johnson also addressed co-mingling of customer funds, which was one of the more egregious accusations levied at FTX following its collapse \u2014 calling for regulation that formalizes the obligation of crypto firms to segregate customer funds. <\/p>\n<p><strong>Related: <\/strong><strong><em>FTX VCs liable to \u2018serious questions\u2019 around due diligence \u2014 CFTC Commissioner<\/em><\/strong><\/p>\n<p>Another gap pointed out by Johnson was in risk management procedures, pointing to the contagion that has continued to spread after major crypto company collapses, such as FTX:\u00a0<\/p>\n<blockquote><p>\u201cInterconnectedness among crypto-firms amplified by fragile or non-existent risk management, corporate governance failures, and conflicts of interests at individual firms fuels the likelihood of crises.\u201d<\/p><\/blockquote>\n<p>The Commissioner suggested that current \u201cframeworks such as anti-trust law and regulation may prove too limited in scope\u201d in increasingly diverse markets and is advocating for \u201ctailored and effective governance, and risk management controls.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/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-s-johnson-urges-congress-for-expanded-powers-in-crypto-oversight\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; CFTC&#8217;s Johnson urges Congress for expanded powers in crypto oversight &#8220; Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson has urged Congress to adopt legislation that &#8220;closes the current gap in the oversight of crypto spot markets.&#8221; During a speech at the digital assets conference at Duke University on Jan. 21, Johnson\u00a0proposed a number&#8230;<\/p>\n","protected":false},"author":1,"featured_media":544171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/f53c48dd-6db2-4c90-85de-ee85a46ad5cd.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75422,74860,135234,96725,4978,72692,70934,67874],"class_list":["post-544170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cftc","tag-cryptocurrency-exchange","tag-ftx","tag-press-release","tag-bankruptcy","tag-legislation","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544170","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=544170"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/544170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/544171"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=544170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=544170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=544170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}