The Commodity Futures Trading Commission (CFTC) has pledged to do more to educate retail digital asset investors to protect the market faction, which is made up of a large minority population underserved by the system. financial.
According to remarks by CFTC Commissioner Kristen Johnston, racial and ethnic minorities, the elderly, serving military, and veterans are increasingly flocking to the digital asset market. These groups are attracted by promises of financial inclusion and opportunities to increase their wealth.
The commissioner pointed out that these promises often fail to materialize as the digital asset market has often seen notable periods of decline. These periods have had impacts on various communities, which is why the CFTC has taken the initiative to explore the benefits of well-tailored and carefully crafted regulations.
She added that the regulations would be followed with high enforcement standards and educational outreach to protect retail participants.
“As retail market participation becomes more prevalent in digital asset markets compared to other commodity futures markets, it is imperative to protect retail market participants with regulation, enforcement and awareness. solid,” Johnston said.
The commissioner made the remarks during a roundtable hosted by her office, in conjunction with the CFTC’s Office of Minority and Women’s Inclusion (OMWI) and the CFTC’s first diversity director, Tanisha Cole. Edmonds, to discuss digital assets and financial inclusion.
CFTC anticipates more powers to oversee digital assets
During the roundtable, the commission also commented on incoming digital asset regulations that would increase its digital asset oversight powers under the Digital Products Consumer Protection Act of 2022 (DCCPA) proposed this month. this.
The Responsible Financial Innovation Act, meanwhile, was seen as a comprehensive reform measure expanding the CFTC’s jurisdiction over digital assets. As officials continue to deliberate on the bills, the CFTC reiterated that it will continue to explore all avenues to exercise its existing powers. This echoes the commission’s recent statement when it announced the restructuring of LabCFTC to become the Office of Technology Innovation (OTI) with a mandate to educate consumers about digital asset scams.
In another consumer education campaign, the CFTC issued a consumer warning against 34 unregistered digital assets and forex trading firms. It warned consumers not to interact with entities added to its Deficient Registration List (RED List). The list now contains 202 companies in total.
Watch: BSV Global Blockchain Convention panel, The Future of Financial Services on Blockchain: More Efficiency and Inclusion
New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.