CFTC’s Crypto Forum: Stablecoin Regulation on the Horizon

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The CFTC’s Acting Chair, Caroline Pham, has announced a CEO Forum to discuss digital asset markets, with a particular focus on stablecoins. This “regulatory sandbox” will propose and discuss possible new regulations, and will include delegates from Circle, Coinbase, Crypto.com, MoonPay, and Ripple.

Pham proposed a program like this in September 2023, but now has the opportunity to enact this transformative policy since the previous Chair resigned last month. The CFTC has invited representatives from Circle, Coinbase, Crypto.com, MoonPay, and Ripple to attend this forum. Pham proposed it as a “regulatory sandbox” to discuss potential new policies concerning tokenized non-cash collateral, especially stablecoins.

Since Pham became its Chair, the CFTC has begun a few roundtable-type discussions similar to this Forum. In late January, she announced several roundtables to discuss crypto market structures. Yesterday, she announced another roundtable to discuss prediction markets. In all these efforts, Pham seeks to drive clarity and collaboration.

It may soon be especially important that the CFTC is hosting this forum and similar discussion organs. Specifically, since Trump won the last election, rumors have been building that the CFTC could replace the SEC as the top crypto enforcer. Earlier this week, Hester Peirce described the SEC’s goals, which place a high priority on delegating its crypto jurisdiction. The SEC may determine that the CFTC or another body should handle specific cryptoassets or sub-sectors of the industry. That doesn’t mean it’ll lose relevance.

Overall, Pham’s forum reflects the new administration’s desire to actively engage with crypto leaders to establish clear regulations and policies. Leaders from industry giants like Coinbase and Ripple will likely have a key role in upcoming stablecoin regulations.

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2025-02-08 02:08