The U.S. Commodity Futures Trading Commission (CFTC) has launched an initiative called 'Crypto Sprint' to advance the cryptocurrency-related recommendations released by the Trump administration on Wednesday.
Acting CFTC Chair Caroline Pham said on Friday that the agency will work closely with SEC Chair Paul Atkins and Commissioner Hester Peirce to advance its 'crypto project' initiative.
"The CFTC is rapidly realizing President Trump's vision of making the U.S. a global crypto capital," Pham said.
These actions are aimed at implementing the recommendations issued by President Trump's Digital Asset Market Working Group, which stemmed from an executive order related to crypto signed by Trump in January.
The crypto group presented 18 recommendations to the CFTC.
The President's working group made 18 recommendations to the CFTC, two of which directly pertain to the CFTC.
The top priority is to advance a series of initiatives, including guidance on how to treat cryptocurrencies as commodities, how registration requirements apply in decentralized finance, and providing crypto guidance to entities regulated by the CFTC.
Another separate task is to consider how to modify rules to allow for blockchain-based derivatives.
It is required that the CFTC and SEC collaborate in regulating crypto.
It is recommended that the CFTC and SEC work together to develop rules and utilize their existing authority to provide comprehensive regulatory clarity.
Both agencies were also asked to create a regulatory sandbox and explore how to allow registrants to provide multiple services within a single user interface over the long term.
Multiple recommendations call for Congress to clarify how the CFTC and SEC allocate regulatory authority over cryptocurrencies, with the report suggesting that the CFTC should be given explicit authority to regulate the spot market for non-security digital assets.
The CFTC states that it has made progress in the crypto space.
Pham stated in a statement on Friday that the CFTC has begun to fulfill the government's commitment, ushering in a 'golden age' for crypto.
The agency previously met with executives from the crypto industry and revoked its so-called 'outdated' employee advisory opinions related to crypto.
Trump nominated Brian Quintenz, the global policy head of the crypto venture arm at Andreesen Horowitz, to lead the CFTC. He is awaiting a confirmation hearing.
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