Markets
Fact Sheet: Questions to Consider About the Financial Innovation and Technology for the 21st Century Act
WASHINGTON DC- Cantrell Dumas, Director of Derivatives Policy, released the following statement regarding Better Markets fact sheet on the Financial Innovation and Technology for the 21st Century Act, which will be voted on in the House of Representatives this week.
“Crypto legislation pending in the House raises serious questions about protecting investors, consumers, markets, and financial stability, as noted in our fact sheet. Whether one supports or opposes legislation, consideration of these key questions should inform the debate.
“This debate should recognize that the preeminent status of America’s financial markets is at stake. Indeed, unleashing crypto scammers on investors and our capital markets without appropriate protections jeopardizes our markets’ reputation as the best place for investors from all over the world to send their money. Investors only send their money here because US markets are well regulated, and they rightly believe that even though their investment may lose money, they will not be senselessly scammed or lied to about their investments . This is why it is essential that everyone asks themselves tough questions about any so-called crypto regulation.
“Congress should consider whether this legislation could potentially open loopholes to avoid SEC regulation, similar to that of unregulated derivatives before the 2008 crisis. Lawmakers should also consider whether the resources provided to the CFTC in the bill are adequate for an already underfunded agency. Without adequate funding, adding new mandates to the CFTC will inevitably and significantly undermine the agency’s ability to fulfill its vital roles on which all Americans depend and benefit. Fully funding the CFTC should be the priority, and only then should we consider adding more work to the agency.
The information sheet is available here.
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Better Markets is a nonprofit, nonpartisan, independent organization founded in the wake of the 2008 financial crisis to promote public interest in financial markets, support Wall Street financial reform, and ensure that our financial system benefits all Americans. Again. Better Markets works with its allies, including many in the financial sector, to promote pro-market, pro-business, and pro-growth policies that help build a stronger, safer financial system that protects and promotes jobs, Americans’ savings, retirement and more. To learn more, visit www.bettermarkets.org.