Better Markets challenges CFTC's role in regulating retail crypto

The Commodity Futures Trading Commission (CFTC) has proposed new rules for certain retail crypto transactions, but Better Markets, a nonprofit financial reform advocacy group, argues the agency is not the right regulator for the job.

Benjamin Schiffrin, director of securities policy at Better Markets, claims the CFTC lacks the investor protection mandate that the Securities and Exchange Commission (SEC) has. He argues that the CFTC's mission is focused on regulating commodity and derivatives markets, which have historically been dominated by large institutions rather than retail investors.

Schiffrin also questioned the CFTC's claim that Congress intended the agency to oversee retail crypto transactions. He pointed out that the statutory authority cited by the CFTC was originally enacted to address fraud in leveraged precious-metals trading, not to regulate retail crypto.

Additionally, Better Markets criticized CFTC Chair Mike Selig’s statements about making the US the 'crypto capital of the world.' Schiffrin argued that crypto still lacks real-world use cases and is primarily used for speculation or criminal purposes. Nate Geraci, president of NovaDius Wealth Management, countered that the crypto industry is simply seeking clear rules and that regulatory agencies may need to step in if Congress fails to act.