Crypto Sphere Requires Urgent Regulation — Report
Timothy Massad, the ex-chair of the US Commodity Futures Trading Commission (CFTC) and Harvard employee, published a report urging for the enhanced crypto sphere regulation.
The document was called “It's Time to Strengthen the Regulation of Crypto-Assets”. In it, Massad puts forward arguments for more stringent regulation of the sphere, mentions the necessity to lower the risk of cyber attacks and to resist the illegal use of crypto assets.
The author believes that the spread of scam and poor protection of investors are directly related to the lack of proper regulation. This is partly due to the fact that the norms applicable to the traditional financial sector do not apply to crypto platforms.
Crypto exchanges are not regulated appropriately, so hacking and attacks occur frequently. The operation of trading platforms requires rules and regulations that minimize any risks.
Massad claims that the US Congress should pay full attention to this issue. Parliamentarians need to develop and adopt appropriate bills that will regulate the work of crypto companies.
Laws should relate to the basic principles of regulation and not go into details, as Congress did with regard to futures and crowdfunding. The US SEC and the CFTC are fully qualified to regulate this industry, and there is no need to create an independent department, according to Massad.
Earlier, Cameron Winklevoss, one of the founders of the Gemini crypto trading platform, once again spoke in favor of the crypto regulation.