Crypto firms have sent a clear message to the Commodities Futures Trading Commission (CFTC): Regulate us, please.
That's the gist of several comment-letters submitted to the agency in recent months in response to the CFTC's request for commentary from market participants to better understand crypto markets before February 15.
For instance, Chicago high-frequency trader Hehmeyer Trading called on the CFTC to crack down on manipulation in the market for spot crypto trading, adding that the agency was the best suited for the job. "We agree with the Commission’s view that crypto‐assets that are not securities are commodities," wrote Christopher Hehmeyer. "Therefore, the Commission should have anti‐fraud and anti‐manipulation authority over crypto‐asset markets."
The firm added,"As Albert Einstein once stated, 'Technological progress is like an axe in the hands of a pathological criminal,'" noting that the CFTC could play an integral role in ensuring crypto tech isn't abused by malevolent forces.
Meanwhile, the Chamber of Digital Commerce, called on the CFTC to collaborate with other financial agencies to provide a clearer framework for crypto firms. "The Chamber believes that the United States needs enhanced coordination among regulators, particularly in light of the byzantine structure of U.S. financial services regulation," Perianne Boring, the Chamber's founder said. Currently, crypto firms have to navigate an intricate web of local, state, and federal regulations to operate in the United States.
Wonks and nerds can read other letters submitted to the agency (from firms including Circle and ConsenSys), here.