Caroline Pham, commissioner at the Commodities Futures Trading Commission, discusses how we should build a regulatory framework for crypto assets, whether the SEC and CFTC should work together, what were the consequences of the Terra collapse, and much more. Show highlights:
- how Cmr. Pham got started in crypto and became a CFTC commissioner
- the importance of the regulatory strategy around crypto
- what crypto’s role is in the financial system
- how bitcoin is a sort of money outside of the traditional financial system
- how friendly regulators should be with the industries they regulate
- why she believes transparency is one of the greatest ideals of American democracy
- how Cmr. Pham believes in self-determination and the power of free markets
- why Cmr. Pham published an op-ed with SEC Commissioner Hester Peirce
- how the Terra collapse incentivized regulators to look deeper into the space
- whether the US approach towards regulation can improve
- the role of the regulatory agencies in making the US the financial leader of the world
- what Cmr. Pham thinks about the new Gillibrand and Lummis bill
- whether SEC Chair Gary Gensler is right about the majority of cryptos being securities
- what are the low-hanging fruit opportunities for regulators when it comes to crypto
- how Cmr. Pham believes we should have a global regulatory framework for crypto
- why she believes algorithmic stablecoins are derivatives
- why things like Terra could act as a “shadow banking 3.0”
- whether there is a way to regulate without having intermediaries
- what Cmr. Pham thinks about FTX proposal to bypass futures commission merchants
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EPISODE LINKS
Caroline Pham
- Twitter: https://twitter.com/CarolineDPham
- CFTC Profile: https://www.cftc.gov/About/Commissioners/CarolineDPham/index.htm
Stablecoin regulation
- Financial Times article: https://www.ft.com/content/981c380f-bb1c-45bd-8d0d-a95b15d96a00
- CNBC on crypto regulation: https://www.cnbc.com/2022/06/03/cryptocurrency-industry-focus-regulation-stablecoins-market-crash.html
- Unchained Coverage: Why Crypto Twitter’s Disrespect Toward Regulators Is a ‘Really Bad Business Decision’: https://unchainedpodcast.com/why-crypto-twitters-disrespect-toward-regulators-is-a-really-bad-business-decision/
- Unchained Coverage: Can a DeFi Smart Contract Be Regulated? Two CFTC Commissioners Discuss: https://unchainedpodcast.com/can-a-defi-smart-contract-be-regulated-two-cftc-commissioners-discuss/
FTX proposal to serve as the trading engine for derivatives:
- https://www.forbes.com/sites/jasonbrett/2022/04/27/the-ftx-us-proposal-that-shook-congress-and-the-crypto-derivatives-world/?sh=3dac29ef4e19
- Unchained Coverage: FTX Wants to Compete with CME – Here’s Why It’s a Big Deal: https://unchainedpodcast.com/ftx-wants-to-compete-with-cme-heres-why-its-a-big-deal/
Hester Peirce
- Caroline’s op-ed with SEC Commissioner Hester Peirce: https://thehill.com/blogs/congress-blog/3503277-making-progress-on-decentralized-regulation-its-time-to-talk-about-crypto-together/
- Hester Peirce’s token safe harbor proposal: https://decrypt.co/66453/secs-hester-peirce-floats-revised-crypto-safe-harbor-rules
- Unchained Coverage: Hester Peirce’s Former Counsel on Terra 2.0, XRP and a Bitcoin Spot ETF: https://unchainedpodcast.com/hester-peirces-former-counsel-on-terra-2-0-xrp-and-a-bitcoin-spot-etf/
Gillibrand/Lummis bill:
- https://fortune.com/2022/06/09/cryptocurrency-senate-washington-lummis-gillibrand-regulation-congress/
- Proposed Crypto Legislation is ‘Big Win’: https://unchainedpodcast.com/proposed-crypto-legislation-is-big-win/
Terra:
- Bloomberg on Terra collapse: https://www.bloomberg.com/news/articles/2022-05-24/terra-collapse-triggers-83-billion-decentralized-finance-slump
- SEC investigation of Terra: https://decrypt.co/102460/sec-terra-ust-stablecoin-collapse-report
- Unchained Coverage: The Chopping Block: Does the New Terra Have Any Chance?: https://unchainedpodcast.com/the-chopping-block-does-the-new-terra-have-any-chance/
- Unchained Coverage: Why Terra Collapsed and Whether an Algo Stablecoin Can Ever Succeed: https://unchainedpodcast.com/why-terra-collapsed-and-whether-an-algo-stablecoin-can-ever-succeed/