Caroline Pham, commissioner of the U.S. Commodity Futures Trading Commission (CFTC), said at Korea Blockchain Week that the Digital Assets Subcommittee plans to formulate regulatory standards for virtual assets within the next two years and will announce recommendations on the 5th of next month.
Caroline Pham said the subcommittee’s goal is to define digital assets. The key is to distinguish whether digital assets are financial assets or non-financial assets. It is not a panacea to regulate digital assets like financial assets, because digital assets can be non-financial assets. Pham also pointed out the need for regulation of DeFi. Pham said that he does not think that DeFi can be unregulated, and DeFi will be regulated. As far as code-based DEX is concerned, we can discuss regulatory issues by focusing on algorithms.
Caroline Pham added that she hopes to learn about innovations in the field of digital assets by visiting South Korea. It is believed that South Korea is 10 years ahead of the United States in cryptocurrency because the public is open to innovation.
The Digital Assets Subcommittee was newly established in February this year, chaired by Mr. Palm, and is responsible for formulating regulatory recommendations for digital assets.
