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ZEC $1,289 CFTC can regulate crypto without new laws, Pham says
Former CFTC acting chair Caroline Pham says existing U.S. commodity laws already give the regulator broad crypto oversight authority.
Key takeaways
- October 5 rule proposal. The CFTC published its leveraged retail crypto trading framework proposal on October 5, 2026.
- $15 trillion daily settlement need. Pham estimated immediate wholesale market settlement would require roughly $15 trillion in available cash each day.
- Two-year tokenized stock timeline. Pham predicted tokenized stocks could gain trading volume on major U.S. exchanges within two years.
What happened
Former CFTC acting chair Caroline Pham stated that existing U.S. commodity laws already grant the CFTC broad authority to regulate cryptocurrency markets without new congressional legislation. She made the remarks during an interview at TOKEN2049 Singapore, following the CFTC's October 5 proposal for a federal framework covering leveraged retail crypto trading. Pham, now MoonPay's chief legal and administrative officer, noted the agency's recent proposals aim to improve protections for American retail traders. Her comments came after the CLARITY Act, which would have provided clearer crypto regulatory guidelines, failed to advance in September, leaving federal regulators to pursue existing legal powers while lawmakers consider further legislation.
Why it matters
Pham's argument relies on the Commodity Exchange Act's broad definition of commodities, which covers most goods, services, rights and financial interests tradable via derivatives, with only onions and movie box office receipts excluded from the definition. She said the CFTC's principles-based regulatory system was designed to adapt to new markets, including products that did not exist when the law was written, such as potential derivatives linked to artificial intelligence computing capacity. Current CFTC Chairman Michael Selig is pursuing additional cryptocurrency rules under the same legislation, though he has acknowledged that congressional action would be necessary to require all cryptocurrency exchanges to register with the commission. Pham also linked the new proposals to the Crypto Sprint initiative she launched in 2025, which aimed to create clearer regulatory pathways for crypto products.
What is still unclear
- The exact scope of the CFTC's authority over crypto transactions that do not involve derivatives, fraud or market manipulation is not specified in existing law.
Questions readers ask
Can the CFTC regulate crypto without new laws?
Former CFTC acting chair Caroline Pham says the Commodity Exchange Act already gives the regulator broad authority over most crypto activity, with only onions and movie box office receipts excluded from the commodity definition. Current CFTC Chairman Michael Selig has also pursued crypto rules under existing legislation, though he notes congressional action would be required to mandate all crypto exchanges register with the commission.
What is the CFTC's October 5 crypto proposal?
The October 5 proposal outlines a federal framework for leveraged retail cryptocurrency trading, covering transactions involving borrowed funds, margin and financing. It would offer a federal regulatory route for eligible trading platforms instead of relying solely on state licensing systems, and the agency is currently seeking public feedback on the rules.
What did Pham say about stablecoins and tokenized assets?
Pham said stablecoins are better suited for transactions between parties lacking mutual trust, while tokenized bank deposits work better for transactions where banks offset obligations before transferring outstanding balances. She predicted tokenized stocks could trade on major U.S. exchanges like Nasdaq and the NYSE within two years.
