Courts give ‘good guidance’ to crypto — CFTC commissioner
According to Christine Johnson of the United States Commodity Futures Trading Commission (CFCC), there are many ways to handle cryptocurrency in the country, but rulemaking through the courts could provide a strong, if slow, path.
Speaking at the Blockchain Association's policy meeting in Washington, DC on November 30, Johnson said that the “best outcome” of corporate governance for crypto companies is to let companies implement their own plans. She cited policymakers introducing reporting requirements for Binance, a $4.3 billion crypto exchange entity.
We are honored to welcome @CFTCjohnson to the #BAPolicySummit stage for our next session with @GeorgiaQuinnEsq from @Anchorage pic.twitter.com/FpgQRjPZ0B
— Blockchain Association (@BlockchainAssn) November 30, 2023
According to the CFTC commissioner, Congress could also step in and clarify the definition of security — one of the key points of the US Securities and Exchange Commission's enforcement actions against crypto companies. At times, the CFTC and SEC have had seemingly inconsistent approaches to crypto enforcement over whether the departments consider it a security or a commodity.
“If we're going to trust the courts, we're going to get some good guidance, but it's not going to come quickly,” Johnson said. “We've been in these situations before with new financial technology, and we have to rely on the legal system.”
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Although both the CFTC and the SEC have, at times, filed lawsuits against various crypto firms rather than go to trial, many companies have claimed their day in court. Binance and Coinbase are still facing an SEC lawsuit filed in June, and the CFTC took legal action against Voyager Digital in October. Johnson said at the time that Voyager was “no better than a house of cards.”
Johnson, one of five commissioners at the CFCC, will take office in March 2022 after more than a decade as a law professor. She has often advocated for stronger regulatory controls for crypto and has called on Congress to expand the CFTC's jurisdiction over digital assets.
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