CFTC to develop a holistic framework for digital currencies by 2024

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The U.S Commodity Futures Trading Commission has unveiled its strategic plan for 2020-2024. The regulator has set its sights on developing a comprehensive regulatory framework for the digital currency industry, among other goals.

Digital currencies have proven to be a tricky industry for regulators, with many taking a wait-and-see approach. However, the CFTC has been on the forefront in advocating for -and implementing- friendly regulations for the industry. In its strategic plan for the next four years, it intends to take this a notch higher and implement a comprehensive regulatory framework for the industry.

CFTC Chairman Heath Tarbert unveiled the plan, remarking, “This is a bipartisan, consensus plan that can stand the test of time. It will guide the last of the CFTC’s unfinished business to completion and better position the agency to tackle the unwritten future.”

The plan, which the regulator approved in May and subjected to a 30-day comment period in June, intends to address the risks and opportunities that 21st century commodities present.

“We will develop a holistic framework to promote responsible innovation in digital assets,” the CFTC claims.

The watchdog also intends to focus on the American derivatives industry to strengthen its resilience and integrity. This will include making the markets more accessible to users, educating the masses on derivatives and increasing protections for investors.

CFTC also intends to “advance policies that deepen liquidity and increase transparency.” This could have a huge effect on the digital currency market, especially given how the industry suffers from lack of liquidity, especially the smaller digital currencies. If rules pertaining to liquidity are implemented, many digital currencies would be forced out of the U.S market.

The regulator also intends to be tougher on those that break the rules. This will also be pivotal for digital currencies, an industry that has seen its fair share of scammers. These scammers taint the industry’s image at a time when it’s striving to go mainstream.

To its credit, the CFTC has already been cracking down on digital currency scammers. Recently, it busted Compcoin, a digital currency scam that raised $1.6 million from investors. It has also been pursuing $147 million scam Control Finance, recently filing for a default judgment against the firm.