CFTC Commissioner Don Stump stated that without clearer legislation on the regulation of cryptocurrencies, measures against cryptocurrency companies are not always justified.
Dawn Stump, an employee of the US Commodity Futures Trading Commission, part of the group of regulators for overseeing the cryptoindustry, believes that the prosecution of a number of cryptocurrency companies with fines and lawsuits is due to the lack of clear legislation to regulate cryptocurrencies.
“I am currently discouraging the CFTC from applying enforcement action to the cryptocurrency industry, which does not have clear guidance on how to comply with regulatory requirements. I am opposed to regulation through enforcement. And now this often happens. ”
As an example of enforcement without clear legislation, Stump cited cryptocurrency exchange Kraken, which was fined $ 1.25 million by the CFTC in September for failing to register as a futures broker.
“We have never developed rules that would explain to these organizations how they can get such registration. I would prefer that we not pursue this kind of case until we determine how they can enforce compliance. ”
The remarks of the CFTC Commissioner perfectly underline the acuteness of the discussion that is now taking place among US regulators and legislators on the issue of the regulation of critical currencies. The question facing the authorities is how to fit the crypto industry into the complex regulatory system of the United States.
Commissioner Stump’s concern is well founded. The Commission has recently been relentlessly pursuing cryptocurrency companies and imposing penalties. In October, the US Commodity Futures Trading Commission fined Tether and Bitfinex a total of $ 42.5 million for misleading investor statements and illegal transactions with US citizens. In September, the CFTC fined 12 New York-based cryptocurrency options trading firms for failing to register and providing false information.
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