Crypto Critics' Corner Is there one good regulator between the SEC and the CFTC? (feat. Sean Tuffy)
Jan 29, 2025
Sean Tuffy, a regulatory consultant specializing in the SEC and CFTC, joins the discussion on the fragmented regulatory landscape of securities and commodities in the U.S. He highlights the historical context of both agencies and advocates for their potential merger to streamline oversight. Tuffy also critiques the current accountability issues in banking regulation and the challenges faced in achieving cohesive crypto legislation. The conversation underscores the urgency for a unified approach in an evolving crypto market.
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SEC vs. CFTC: Different Origins and Focus
- The SEC oversees securities markets (stocks, exchanges), while the CFTC regulates commodities and futures trading.
- The CFTC's origins are in agriculture, while the SEC handles more traditional financial markets.
CFTC's Belated Arrival
- The CFTC was established 40 years after the SEC to regulate commodities and futures trading.
- Originally, the CEA oversaw specific commodities, requiring amendments for new ones, but the CFTC has broader powers to regulate all futures trading.
Almost a Merger
- Initially, the CFTC was proposed as part of the SEC, as described in Robin Wigglesworth's book, Trillions.
- The SEC resisted regulating agricultural commodities, deeming them beneath Wall Street's purview.
