company doesn’t have enforcement sources with out Congress
Dan Berkovitz, one among three commissioners presently serving on the U.S. Commodity Futures Trading Commission, mentioned whereas the company is suited to futures contracts, swaps, and choices buying and selling, it might want further sources to deal with the money market for crypto property.
Speaking on the Managed Funds Association Digital Assets Conference on Tuesday, Berkovitz said the Commodity Futures Trading Commission, or CFTC, enforcement actions within the crypto area have been “aggressive,” citing a $100 million civil financial penalty in opposition to derivatives exchange BitMEX. Though he mentioned the company had the “capability and the expertise” to additional regulate crypto property, it was presently unable to take action as a result of a “resource issue.”
“If congress were to determine that our jurisdiction should be expanded to somehow regulate the cash market, we would really need additional resources to do that,” mentioned Berkovitz. “Cryptocurrency markets, we’re not necessarily looking for more authority without more resources. We’re staying in our lane.”
Berkovitz famous there was “a lot of coordination” between the company, the Securities and Exchange Commission, Financial Crimes Enforcement Network, Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Department of the Treasury. The CFTC labored with the Financial Crimes Enforcement Network to settle the case in opposition to BitMEX, and has coordinated with the SEC to research buying and selling apps dealing in crypto.
“We’re all pretty familiar with the lanes that we go in,” mentioned Berkovitz, referring to the jurisdictions of the respective businesses. “I think coordination is actually excellent.”
The CFTC commissioner additionally doubled down on his feedback from June that decentralized finance platforms had been possible unlawful below the Commodity Exchange Act. According to Berkovitz, there was a “spectrum of centralization” round initiatives within the DeFi area that might make them topic to registration on the CFTC.
Related: CFTC renewed: What Biden’s new company picks maintain for crypto regulation
Five commissioners usually serve on the CFTC, however the company has been shaken up by the departure of former chair Heath Tarbert in January and Brian Quintenz on Aug. 31. Berkovitz has additionally introduced he plans to depart the fee on Oct. 15, leaving solely performing chair Rostin Behnam and Dawn Stump.
Earlier this month, President Joe Biden mentioned he deliberate to appoint Behnam to imagine his place on a everlasting foundation along with filling the remaining seats with regulation professor Kristin Johnson and former SEC enforcement division senior counsel Christy Goldsmith Romero. All should be confirmed by the Democrat-controlled Senate, however the White House has not but introduced a doable substitute for Berkovitz.