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Pro-XRP Attorney Reacts to New Game-Changing CFTC Crypto Initiative

Fri, 09/08/2023 - 11:00
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Gamza Khanzadaev
CFTC chief Caroline Pham presents crypto sandbox, pro-XRP expert Jeremy Hogan shares thoughts
Pro-XRP Attorney Reacts to New Game-Changing CFTC Crypto Initiative
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CFTC Commissioner Caroline Pham has unveiled a pioneering proposal - the launch of the first U.S. pilot program for digital asset markets. The initiative seeks to establish a regulatory sandbox for testing and assessing innovation, providing a secure framework within existing regulations and safeguards.

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This move reflects a growing trend among international regulators who are proactively embracing technological advancements to foster economic growth. Commissioner Pham's proposal highlights concerns that the United States risks lagging behind in the fast-evolving blockchain and digital asset industry due to its cautious "wait and see" approach.

The crypto community has greeted this proposal with enthusiasm and some skepticism. Jeremy Hogan, a prominent attorney known for his support of XRP, raised a valid point regarding potential regulatory conflicts. Given the differing stances of the CFTC and SEC on regulatory control, cooperation between the two agencies becomes essential for the success of this regulatory sandbox. Hogan humorously quipped about the challenges of proceeding without SEC involvement.

Following roundtable discussions, the CFTC will propose and adopt rules that define the pilot program. These rules will establish a specific time frame for the pilot program's operation. They will incorporate elements drawn from past successful pilot initiatives, such as registration and eligibility requirements, financial resource conditions, risk management protocols, product and contract terms and other prerequisites, including disclosures and reporting.

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All in all, Commissioner Pham's proposal represents a significant step toward shaping the future of digital asset markets in the United States. However, at the end of the day, it is all about the execution, not the ideas.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.