As the Trump administration signals a friendlier approach to crypto, the Commodity Futures Trading Commission (CFTC) remains firm in its stance. Acting chair Caroline Pham emphasized that regulatory standards will not be lowered for digital assets, regardless of political backing.
“There is no easy street for anybody, and regulators aren’t easy,” said Pham during the Coinbase Annual Summit on Thursday.
Crypto Innovation Doesn’t Excuse Fraud
Pham made it clear that being “pro-innovation and pro-growth” doesn’t mean tolerating violations. She drew a line between support for technology and criminal behavior like “lying, cheating, and stealing.”
“We are not twisting the law to criminalize an asset class, but we are also not going to let bad actors get away.”
Pham applauded the CFTC’s shift away from “regulation by enforcement,” which characterized previous approaches, especially under the Biden administration. Instead, she says the agency is refocusing on rooting out fraud and protecting markets.
Criticism of Biden-Era Crypto Policy
According to Pham, past policies “went beyond what the law says,” disrupting not just crypto, but also traditional derivatives and forex markets.
“Flexing” the law to go after blockchain-based innovations, she argued, risks damaging the very foundation of global markets.
Uberizing Crypto: Mass Adoption as Protection
Pham also elaborated on her vision of “uberizing crypto” — a metaphor for making blockchain technology so essential that it’s impossible to ban.
“When something becomes so big, so accepted, so part of our lives, you can’t really take it away,” she explained.
This mass integration could serve as a political shield for crypto, much like how Uber disrupted transportation and became too embedded to shut down.
CLARITY Act Progresses in Congress
Pham’s remarks coincided with legislative movement: the CLARITY Act, a market structure bill, passed a House Financial Services Committee vote this week. The bill aims to clearly assign oversight of crypto to either the SEC or the CFTC, with the latter likely gaining more authority.
As Pham prepares to leave for the private sector, Brian Quintez, a crypto policy leader, awaits Senate confirmation to succeed her.