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

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Member of the Commodities Trade CommissionUS futures (CFTC) Christy Goldsmith Romero has called on Congress to prohibit newly licensed cryptocurrency exchanges from certifying products for listing themselves.

Christy Goldsmith RomeroRomero) spoke at a conference at the University of Pennsylvania dedicated to the FTX crypto exchange. During her 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 ban the recently...licensed cryptocurrency trading platforms must certify products for listing themselves. The important thing here is to set a framework against regulatory arbitrage,” says Romero.

Now exchanges can determine for themselves how muchthis or that token is safe, which can ultimately cause harm, says the commissioner. This is not suitable for listing cryptocurrency futures, for example. Romero also suggested that cryptocurrency companies wishing to issue tokens should follow the CFTC regulatory framework.

Overall, according to Romero, testingcryptocurrency firms is not carried out comprehensively. It is essential that everyone involved in the industry operate responsibly, from lawyers to investors. Promises of huge profits often mute common sense, which is why situations like FTX occur.

“If the crypto industry wants to restore user trust, it needs to seriously push itself,” she said.

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