CFTC Commissioner Urges Congress to Ban Exchanges from Self-Certifying Tokens

U.S. Commodity Futures Trading Commission (CFTC) member Christie Goldsmith Romero called on Congress to ban newly licensed cryptocurrency exchanges from certifying products for listing themselves.

Christy Goldsmith Romero spoke at the University of Pennsylvania conference on the FTX crypto exchange. During the speech, she stated that the current system, in which cryptocurrency platforms independently certify tokens, does not provide security and proper oversight.

“I call on Congress to prohibit newly licensed cryptocurrency trading platforms from certifying products for listing themselves.. It’s important to set a framework against regulatory arbitrage here,” says Romero.

Now exchanges can determine how safe a particular token is, which in the long run can hurt, says commissioner. This is not suitable, for example, for the listing of cryptocurrency futures.. Romero also suggested that cryptocurrency companies wishing to issue tokens should be guided by the regulatory framework of the CFTC.

In general, according to Romero, the verification of cryptocurrency firms is not carried out comprehensively.. Everyone involved in the industry needs to work responsibly – from lawyers to investors. Promises of huge profits often stifle common sense, which is why things like FTX happen.

“If the crypto industry wants to restore the trust of users, it should seriously tighten up,” she said.

Earlier, another CFTC commissioner, Kristin Johnson, said that the situation around the FTX and Binance exchanges was part of a series of bankruptcies of cryptocurrency companies due to a liquidity crisis.