Caroline Pham from the Commodity Futures Trading Commission has recently made a statement surrounding cryptocurrency investors. She has proposed that a separate office has to be introduced for the cryptocurrency investors to deal with their queries.
Caroline Pham Proposes a Separate Office
According to Caroline Pham, the government should dedicate an Office of the Retail Advocate. With the proposal, Pham has attempted to expand the consumer protection mandate of the CFTC.
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According to Pham, the particular office will be put in place for the well-being and support of the people. It would become a voice for the people helping them get their concerns and complaints taken up to the concerned listeners.
Her words were shared in a speech she delivered on September 27 hosted by Corda, a blockchain project. She talked about the recent developments that have taken place in the world of cryptocurrencies resulting in major negative impacts on the industry.
Consumer Protection is the Ultimate Need
Over time, the cryptocurrency industry has continued to be a target for fraudsters and scammers. They have been finding newer and more sophisticated ways to lure investors and steal their money.
Although the major and high-profile investors are able to get their voices heard through multiple channels, the situation is different for the common and individual investors.
They are the ones being targeted by the fraudsters so they need all the protection they can get.
She added that over time the substantial individual, retail, and any other losses due to scams and even crypto crashes are what the regulations need to be prepared for.
The industry needs balance and stability, and it is only achievable with the adoption of the right regulations.
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Inspiration from the US SEC
Pham stated that the CFTC has adopted a model similar to the one the SEC has introduced for the Investor Advocate Office.
She revealed that their model is a full package for the consumers and will be able to provide them with all the support possible.
Their model and way of handling such issues are tried-and-tested, so she is confident that it would prove vital for the consumers and retailers.
Functions Defined by Pham
While talking about the dedicated office, Pham revealed that the office would have four core functions.
The function would let the investors contribute to the policymaking and amending process. The function would help resolve issues and problems between the investors and the SEC or other self-regulated bodies.
The office would provide support and assistance to the advisory committees. The fourth core function would be to carry out a study on the behavior of the investors, carry out research, and perform economic analysis.