Empty seats could hamper CFTC’s ability to regulate crypto
The Commodity Futures Trading Commission (CFTC) may soon regulate cryptocurrency under the proposed Clarity Act, which introduces a new asset category called "digital commodity." The CFTC currently faces challenges due to an empty chair and upcoming departures of commissioners, potentially hindering its regulatory capabilities. The agency is deadlocked with two Democratic and two Republican commissioners, limiting its ability to issue regulations or enforce actions. The nomination of Brian Quintenz as chair has stalled, contributing to this gridlock. Recent departures of commissioners further complicate the situation, with no clear plan for replacements. The CFTC's inaction has allowed the crypto industry to operate without stringent oversight, raising concerns about its capacity to effectively regulate the sector.
