Better Markets Challenges CFTC's Role in Retail Crypto Oversight
Advocacy group Better Markets says the CFTC's proposed framework would leave retail crypto investors less protected than SEC oversight.
Financial reform advocacy group Better Markets has criticized the Commodity Futures Trading Commission's proposed framework for regulating certain retail cryptocurrency transactions and exchanges, arguing the agency is not the right regulator for the task.
In its response to the CFTC's proposal, Better Markets said that placing retail crypto markets under the CFTC's oversight would result in weaker investor protections than if the Securities and Exchange Commission were the primary regulator. The group's position contrasts with the CFTC's effort to expand its authority over digital asset markets.
Ongoing Turf War
The CFTC and SEC have both sought to claim jurisdiction over various parts of the crypto industry, with the agencies taking different approaches to classification and enforcement. The CFTC's proposed framework is one of several recent moves by U.S. regulators to clarify how existing rules apply to digital assets.
The debate over which agency should oversee retail crypto trading remains unresolved, and any final rule would likely face further scrutiny from industry participants and lawmakers.