Crypto market structure legislation raises significant questions about the protection of consumers, investors and financial stability

WASHINGTON, DC –Dennis Kelleher, co-founder, president and CEO, issued the following statement regarding a letter Better Markets sent to U.S. House leadership raising questions about provisions in the crypto market structure legislation before Congress.

“The U.S. regulatory system has helped create the broadest, deepest, and most liquid financial markets in the world. However, it must be recognized that these markets are not destined to remain the preeminent markets of the world. Their depth and integrity have earned the trust of investors and clients around the world, and this is largely due to their trust in them The markets are well regulated.

“That is what the changes to this regulatory regime are about and why there are concerns about the crypto market structure legislation currently being considered in the House of Representatives. It raises serious questions about investor, consumer, market and financial stability protection, and regardless of whether one supports or opposes the legislation, consideration of these key questions is critical.

“For example, although the CFTC is charged with regulating crypto exchanges and broker-dealers, the legislation does not provide the agency with additional resources to implement the many necessary regulations and supervisory functions. These unfunded mandates come at the expense of the CFTC's important existing work ensuring essential commodities are available to the American people at fair prices and overseeing the derivatives markets that ultimately play a critical role in our commodity markets for the benefit of farmers. Producers and hardworking Americans. As currently written, it also limits the SEC's jurisdiction and power, endangering investor protection and long-standing widespread cryptocurrency-related abuses, including rampant wash trading.

“We hope that members, regardless of what they think about the legislation, will carefully consider these issues as the process moves forward.”

You can find the full letter here.

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Better Markets is a nonprofit, nonpartisan, independent organization founded in the wake of the 2008 financial crisis to promote public interest in financial markets, support Wall Street financial reform, and make our financial system work for all Americans again . Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and grows Americans' jobs, savings, pensions and more. To learn more, visit www.bettermarkets.org.