Pham Says CFTC Law Already Reaches Most Crypto Markets
Former CFTC acting chair Caroline Pham says existing US law gives the agency wide reach over crypto, as it weighs rules for leveraged retail trades.
Former Commodity Futures Trading Commission acting chair Caroline Pham says existing law gives the agency broad reach over crypto, a view that matters as the CFTC considers new rules for retail trading. In an interview with The Block at Token2049 Singapore, Pham said the Commodity Exchange Act treats nearly everything as a commodity, apart from onions and movie box office receipts. Pham is now chief legal officer and chief administrative officer at MoonPay.
What did Pham say the law covers?
Pham argued that the law’s broad definition gives the CFTC room to address new markets, including crypto, without waiting for Congress to pass a new market structure law. She also pointed to possible derivatives—contracts whose value depends on another asset or measure—based on AI computing capacity as an example of products the framework could cover.
Her comment describes her reading of the law, not a ruling that the CFTC can oversee every crypto product or activity. The agency’s authority depends on the type of transaction and market involved.
What is the CFTC considering for crypto trading?
On Oct. 5, the CFTC issued an advanced notice of proposed rulemaking, an early step that asks for public feedback before detailed rules are drafted. The notice concerns retail crypto trades made with borrowed money, margin or other financing under a section of the Commodity Exchange Act.
The agency said it intends to develop rules for those transactions and markets. Its announcement seeking public comment does not set final requirements. Pham praised the effort, telling The Block that supervised exchanges would offer retail traders stronger protection than a patchwork of state rules.
What remains undecided?
The CFTC has not finalized the rules, and the notice does not establish a new blanket licensing system for all crypto platforms. The agency is seeking feedback on a framework tied to specific retail commodity transactions involving crypto assets. The notice leaves the detailed requirements to a later stage.
Pham’s argument is that existing law can support meaningful CFTC oversight in parts of the crypto market. How far that approach reaches will depend on the rules the agency develops and the transactions they cover.
References
- The Block at Token2049 Singapore — theblock.co
- announcement seeking public comment — cftc.gov