The Commodity Futures Trading Commission (CFTC) explained in its press release that the previous guidelines do not reflect the current functioning of the cryptocurrency market. According to Caroline Pham, acting chair of the CFTC, the elimination of the previous system will allow for safer access to the cryptocurrency market in the United States.
The CFTC added that the withdrawal allows it to design new, more realistic guidelines for the cryptocurrency market. In addition, it is open to public suggestions through its Crypto Sprint initiative. Pham stated that this withdrawal demonstrates the agency's willingness to take swift action to oversee this rapidly evolving sector.
The old rules on cryptocurrencies were used to clarify regulations regarding the delivery of crypto assets. Since then, the cryptocurrency market has expanded enormously and, therefore, these rules are not as useful in the current market ecosystem.
The measure is based on the advice of the Presidential Working Group on Digital Asset Markets, which requested regulators to review their rules and provide more transparent consumer protection.
Most industry players have continued to call for more consistent regulations. They argued that previous rules were confusing and slowed the pace of innovation.
Furthermore, the recent measures by the CFTC show its greater receptiveness to market changes. A notable example is its recent approval of spot cryptocurrency trading in the U.S.
The new decision by the CFTC demonstrates that regulators are aware of the need for new guidance, given the ongoing growth of cryptocurrency trading systems. According to the agency, this measure contributes to both security and access, objectives of the U.S. political agenda on cryptocurrencies.
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