Markets
Factsheet: Questions to consider about the Financial Technology and Innovation Act for the 21st Century
WASHINGTON DC- Cantrell Dumas, Director of Derivatives Policy, made the following statement regarding better markets information sheet on the Financial Innovation and Technology for the 21st Century Act, which will be voted on this week by the House of Representatives.
“Cryptocurrency legislation pending in the House raises serious questions about the protection of investors, consumers, markets and financial stability, as highlighted in our fact sheet. Whether you support or oppose any legislation, consideration of these key issues it should inform the debate.
“This debate should recognize that the preeminent status of U.S. capital markets is at stake. That’s because unleashing crypto criminals on investors and our capital markets without adequate protections risks our markets’ reputation as the best place for investors around the world to send their money. Investors send their money here only because the US markets are well regulated, and investors rightly believe that although their investment may lose money, they will not be arbitrarily ripped off and lied to about their investments. That’s why it’s critical that everyone asks tough questions about any supposed regulation of cryptocurrencies.
“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 must also ask themselves whether the resources provided to the CFTC in the bill are adequate for an already underfunded agency. Without adequate funding, adding additional mandates to the CFTC will inevitably and significantly compromise the agency’s ability to fulfill its vital roles on which all Americans depend and benefit. Full funding of the CFTC should be the priority, and only then should consideration be given to adding more work for the agency.”
You can find the information sheet Here.
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Better Markets is a non-profit, non-partisan, independent organization founded in the wake of the 2008 financial crisis to promote public interest in financial markets, support financial reform on Wall Street, and make our financial system work for all Americans Still. Better Markets works with its allies, including many in finance, to advance pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes jobs, savings, Americans’ pensions and more. To find out more, visit www.bettermarkets.org.