Caroline Pham is the new Acting Chair of the Commodity Futures Trading Commission (CFTC), the US agency responsible for overseeing markets in derivatives (financial contracts "derived" from the price of an underlying asset).
She will lead the CFTC on an interim basis until President Trump nominates a permanent chair.
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Interesting fact
On the last day of the Vietnam War, Pham’s parents were among the thousands that were airlifted from Saigon.
How does the CFTC regulate crypto?
As far back as some of the earliest recorded history, there have been financial contracts that are based on or derived from an underlying asset. These “derivatives” include, for example, grain futures: contracts to buy or sell grain on a future date. Over time derivatives have arisen for almost anything with a measurable price, and that now includes cryptocurrencies. Part of the CFTC’s remit is to regulate platforms that offer crypto derivatives.
Caroline’s commentary
Further reading: Tokenization
Innovation playground
In her tenure at the CFTC, Pham has championed “regulatory sandboxes”: testing grounds that let firms experiment without being fully regulated.
Her proposal for a crypto sandbox could be a gamechanger for an industry that, operating at the cutting edge of technology, can accidentally run afoul of regulations. For example, platforms within the sandbox could receive temporary exemptions so they can launch new products without fear of penalties.
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