CFTC oversight framework can cover most crypto markets, Caroline Pham says

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CFTC oversight of crypto markets

Highlights

Caroline Pham states the CFTC's Commodity Exchange Act jurisdiction and principles-based framework can already address most crypto activities, including leveraged retail crypto trading in the U.S.
Pham argues tokenized deposits, not stablecoins, will be essential for wholesale markets because atomic settlement in cash would require $15 trillion daily, an impractical scale.
She predicts the New York Stock Exchange and Nasdaq will list real tokenized shares and achieve meaningful trading volume within two years, driven by regulatory exemptions and fintech partnerships.

CFTC rulemaking and crypto market coverage

As reported by The Block, Pham said in an interview at Token2049 Singapore that the Commodity Exchange Act gives the CFTC jurisdiction over nearly everything except onions and movie box office receipts. Pham, the former acting chair of the regulator and now chief legal officer and chief administrative officer at MoonPay, said the law was built as a principles-based framework flexible enough to cover new commodity types, including potential markets linked to AI compute.

She said the industry's attention is increasingly turning to rulemaking after the Clarity Act fell through last month, even as some participants still push for formal legislation. In her view, the CFTC's current framework is already capable of addressing crypto activity, and she described the agency's recent proposed rulemakings as the right kind of consumer protection for leveraged retail crypto trading in the U.S.

The CFTC under Chairman Michael Selig is issuing proposals for the sector, including an advanced notice on Regulation CAM and Regulation CTX. The agency says it would establish a federal framework for leveraged retail crypto transactions as an alternative to state licensing, and Pham says that approach continues the CFTC Crypto Sprint initiative she launched in 2025, which authorized spot crypto trading on CFTC-registered exchanges using existing Dodd-Frank authority.

Tokenized deposits, equities and broader market impact

Pham also argues that wholesale markets are overestimating stablecoins relative to tokenized deposits. She says a single day of atomic settlement would require about $15 trillion in cash, a scale she argues is impractical, while banks currently manage volume through net settlement that offsets obligations and reduces the amount of cash that must change hands.

In that context, she says tokenized deposits are likely to be essential for wholesale financial markets, while stablecoins are better suited to transactions where counterparties do not know or trust each other or where eliminating settlement risk is the main objective. The distinction points to different roles for blockchain-based payment instruments as regulated finance and crypto infrastructure converge.

On tokenized equities, Pham says she expects the New York Stock Exchange and Nasdaq to list real tokenized shares and generate meaningful trading volume within the next two years. She links that outlook to the SEC's innovation exemption and to partnerships such as Nasdaq's work with Payward and ICE's link with OKX, which she says signal deeper ties between traditional finance and crypto-native technology.

She also distinguishes approved tokenized securities from synthetic tokens that issuers have not authorized, arguing that real securities carry shareholder rights and governance. Beyond equities, she says NFTs could see a second wave as regulatory clarity improves, with the technology used more as a customer engagement and loyalty tool than as a security.

Our earlier article on crypto perpetual futures in Singapore explained how regulators are increasingly scrutinizing highly leveraged “perps” as they gain traction among traders, with decentralized venues like Hyperliquid drawing particular attention. We also outlined how these platforms rely on smart contracts to manage collateral and liquidations without traditional intermediaries, sharpening concerns about risk management and consumer protection.

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