NEW YORK/WASHINGTON: A top official with the US Commodity Futures Trading Commission on Wednesday plans to warn lawmakers against allowing cryptocurrency exchanges to self-certify with the agency to list products for trading.
But CFTC Commissioner Christy Goldsmith Romero said the process would open the door to"regulatory arbitrage" as some crypto assets are likely securities that need to be overseen by a different agency, the Securities and Exchange Commission . Her warnings come as lawmakers regroup to draft legislation to better oversee the troubled crypto industry, which had a wave of bankruptcies last year and continues to reel from FTX's sudden collapse and alleged fraud.
Federal prosecutors have brought charges against three of FTX's former top executives, accusing them defrauding investors and misappropriating customer funds.