WASHINGTON, D.C.—Dennis Kelleher, Co-Founder, President, and CEO, issued the following statement regarding a letter Better Markets sent to the leadership of the U.S. House of Representatives raising questions regarding provisions in the crypto market structure legislation that is moving through Congress.
“The U.S. regulatory system has helped foster the broadest, deepest, and most liquid financial markets in the world. However, it must be recognized those markets are not preordained to remain the preeminent markets in the world. Their depth and integrity are what has earned the trust and confidence of investors and customers worldwide and that is largely due to their faith in those markets being well-regulated.
“That’s what is at stake with changes to that regulatory system and why there are concerns about the crypto market structure legislation that is currently being considered by the House of Representatives. It raises serious questions about investor, consumer, market, and financial stability protections and, whether one supports or opposes the legislation, consideration of these key issues is critically important.
“For example, despite charging the CFTC with regulating crypto exchanges and broker-dealers, the legislation provides the agency with no additional resources to implement the numerous rulemakings and oversight functions required. These unfunded mandates will come at the cost of the CFTC’s important existing work ensuring that vital commodities are available to the American people at fair prices and policing the derivatives markets, which play a vitally important role in our commodities markets ultimately for the benefit of farmers, producers, and hardworking Americans. As drafted, it also limits the jurisdiction and power of the SEC, which risks investor protection and longstanding widespread abuses associated with crypto, including rampant wash trading.
“We hope Members, regardless of what they think about the legislation, carefully consider these issues as the process moves forward.”
The full letter can be found here.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street 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 promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
