CFTC Chair Heath Tarbert called for a "predominately
principles-based approach" to regulating digital assets and
other FinTech products.
In commentary featured in Fortune, Mr.
Tarbert stated that relying on principles rather than
"detailed, prescriptive rules" will (i) provide for
greater flexibility in the tech sector, (ii) facilitate innovation
and (iii) help the CFTC "stay ahead of the curve." The
latter is of particular importance, according to Mr. Tarbert, due
to changes occurring in technology and the marketplace.
Mr. Tarbert clarified that "principles-based
regulation" does not mean that the agency is considering
"deregulation" or a "light-touch" approach. He
stated that the approach is (i) "more efficient and
flexible" and (ii) prevents bad actors from exploiting
loopholes often found in rules-based regulation.
