The CFTC’s Summer Mersinger urged the industry to interact with the incoming US administration and promoted organized crypto laws.
Speaking at the North American Blockchain Summit on Nov. 21, CFTC Commissioner Summer Mersinger emphasized the need for standardized U.S. crypto policies to be developed through notice-and-comment regulation.
CFTC’s Role in “Regulation by Enforcement”
The Commodity Futures Trading Commission (CFTC) has been part of the current “regulation by enforcement” approach alongside the Securities and Exchange Commission (SEC), as demonstrated by recent actions such as charges against Uniswap Labs.
Mersinger also highlighted a recent case involving a decentralized autonomous organization (DAO), where the CFTC sought a court ruling to classify the entity as either a corporation or association:
“I really started to get uncomfortable with this idea that we were kind of setting some sort of policy through our enforcement cases and through going to court. To me, how you’re going to treat an entity that’s a policy question.”
Mersinger pointed out that while crypto entities, including decentralized finance (DeFi) platforms, are often charged under existing frameworks and expected to comply with the same laws as traditional entities, there is no mechanism for official registration. She explained:
“This is really tricky settlements because the information we share publicly with our enforcement settlements really doesn’t offer a lot of guidance for anyone who’s trying to do the right thing.”
Uniswap, for instance, attempted to comply but still faced charges. Although the platform ultimately settled with the CFTC for what Mersinger described as a “very small fine,” the case illustrates the challenges crypto entities face when navigating unclear regulatory expectations.
Despite its smaller size compared to agencies like the SEC, Mersinger argued that the CFTC is well-suited to oversee the cryptocurrency spot market. She noted that the CFTC could implement significant legislative changes efficiently without disrupting the market.
New Laws to Support Crypto Firms
Mersinger expressed support for the development of new laws and regulations for the crypto industry, even though her approach typically leans conservative:
“What we’re seeing right now is that without those laws, you have agencies like the Federal Communications Commission (FCC) who can come in and create chaos and bring charges where maybe it doesn’t fit.”
She encouraged crypto companies to begin engaging with the incoming administration as soon as its leadership is established:
“Don’t be afraid to start knocking on doors on day one because I think it’s critical to start” the conversations early on.
