- Pham says existing law supports further crypto rulemaking.
- The CTX and CAM initiative remains preliminary, with public feedback sought.
- Pham expects tokenized deposits to play an essential role in wholesale settlement.
Former acting chair Caroline Pham says CFTC crypto regulation can advance under existing law, without waiting for fresh congressional legislation. Speaking to The Block at Token2049 Singapore, she backed regulated venues for retail traders. Her comments come as the agency seeks feedback on a federal framework for leveraged crypto transactions, following the Clarity Act setback.
CFTC crypto regulation proposals draw on existing law
Pham, now a senior legal executive at MoonPay, pointed to the Commodity Exchange Act and its broad definition of commodities. She highlighted onions and movie box office receipts as exceptions, arguing the framework can accommodate emerging markets, including AI compute.
However, a broad commodity definition does not establish unlimited oversight of every transaction. Chairman Michael Selig says the agency cannot require all crypto assets to trade on registered platforms without congressional action.
On October 5, the CFTC issued an advance notice seeking comments on proposed Regulation CTX and Regulation CAM. The initiative concerns leveraged, margined or financed retail crypto transactions. It remains an early rulemaking step, rather than a final rule.
Pham described this CFTC crypto regulation effort as a continuation of her 2025 Crypto Sprint. She argued that regulated exchanges offer stronger protections than fragmented legal arrangements.
The distinction matters for CFTC crypto regulation: an optional federal route would differ from mandatory oversight across the spot market.
Pham weighs tokenized deposits and regulated stock trading
Pham also challenged assumptions that stablecoins will dominate wholesale settlement. She estimated that settling trades individually in real time could require roughly $15 trillion in cash during one trading day.
Banks instead offset obligations through net settlement, reducing the amount that must change hands. She therefore expects tokenized deposits to remain necessary, while stablecoins serve transactions where counterparties lack mutual trust.
Beyond CFTC crypto regulation, Pham predicted meaningful trading in tokenized NYSE and Nasdaq shares within two years. That remains her forecast, rather than a confirmed exchange timetable.
She distinguished company shares with ownership and governance rights from unapproved synthetic tokens. Pham also anticipated renewed NFT activity, comparing customer engagement uses with airline miles and loyalty points.
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