Caroline Pham says CFTC could regulate most crypto assets

Caroline Pham, former acting chair of the Commodity Futures Trading Commission (CFTC), stated that the Commodity Exchange Act could grant the agency jurisdiction over nearly all crypto assets without the need for new legislation. Pham noted that the law defines commodities broadly, with only very specific exceptions such as onions and movie box-office receipts. Under this interpretation, assets like Bitcoin, Ether, and stablecoins could fall under the CFTC’s regulatory reach.

Pham’s comments coincide with the CFTC’s efforts to establish a federal framework for leveraged crypto trading. The agency has issued advance notices for Regulation Crypto Asset Markets (Regulation CAM) and Regulation Crypto Asset Transactions (Regulation CTX), which aim to provide an optional federal route for exchanges offering retail crypto trading on margin or through financing. Pham described these proposed guardrails as the type of protection necessary for US retail traders.

Additionally, Pham discussed the role of tokenized bank deposits and stablecoins in wholesale markets, noting that tokenized deposits could maintain liquidity advantages while enabling blockchain-based settlement. She also identified artificial intelligence computing resources as an emerging market for potential derivatives development.