The US Commodity Futures Trading Commission has unveiled its strategic plan for the years 2020-2024. The US regulator plans on developing a comprehensive regulatory framework for the digital currency industry, among other goals. Cryptocurrencies have been a tough sector for regulators to regulate, with many taking a wait-and-see approach. Now the CFTC has revealed its plan to develop a “holistic framework” for the crypto industry. The US regulator has been at the forefront in advocating for friendly regulations for the crypto industry.
CFTC claims to develop a holistic framework for the crypto industry.
The US CFTC Chairman Heath Tarbert unveiled the plan, remarking that this is a bipartisan, consensus plan that can stand the test of time. It will guide the last of the regulator’s unfinished business to completion and better position the agency to tackle the unwritten future. The plan that was approved by the CFTC in May and subjected to a 30-day comment period in June intends to address the risks and opportunities that 21st-century commodities present. The CFTC claimed that it plans on developing a holistic framework to promote responsible innovation in digital assets. The financial watchdog also intends to focus on the American derivatives industry to strengthen its resilience and integrity.
CFTC regulations could boost crypto adoption in the country.
The US CFTC is planning to “advance policies that deepen liquidity and increase transparency.” This could have a huge effect on the digital currency market, especially given how the industry suffers from a lack of liquidity, especially the smaller cryptos. If regulations pertaining to liquidity are implemented, many digital currencies would be forced out of the US market. The regulator also intends to be tougher on those that break the rules. The new regulations by the CFTC could potentially boost crypto adoption in the United States.