CFTC Commissioner Stump Describes Regulatory Challenges Presented By Innovation

CFTC Commissioner Dawn D. Stump described regulatory challenges presented by financial technology market innovation.

In remarks before the Chamber of Digital Commerce, Commissioner Stump said that the pace of market innovations in the areas of financial technology, such as digital assets and decentralized finance, was increasingly presenting the CFTC with "novel issues" that require "comprehensive thinking" by regulators. She acknowledged that the CFTC's current approach of relying on enforcement actions to solve these issues was "insufficient," and that the current regulatory framework needed to evolve to meet market demands. She argued that the CFTC must "bridge the gap between its enforcement and oversight functions by setting more clearly defined regulatory expectations for new, innovative applications in the derivatives market infrastructure."