Brookings scholars warn of the risks of the CLARITY Act, as the U.S. CFTC may face a substantial regulatory dilemma

American Brookings scholar Aaron Klein warned that as Congress reviews digital asset legislation, the Commodity Futures Trading Commission (CFTC) may face issues of inadequate regulatory capacity when expanding its regulatory authority over digital assets. Aaron Klein pointed out that the CFTC was originally established to regulate the commodity futures market and was not designed for the scale of responsibilities proposed under the current cryptocurrency regulations. A lack of additional personnel, funding, and expertise could lead to a situation of "having regulatory authority but no substantive oversight."

Recent staff turnover and institutional adjustments at the CFTC have weakened its regulatory capacity, and expanding its responsibilities could repeat the regulatory failures seen during past financial crises. If cryptocurrency regulatory responsibilities are dispersed among multiple agencies, it could lead to delays and confusion, repeating the enforcement shortcomings of the Dodd-Frank era. Aaron Klein criticized the allegations that financial regulation is influenced by politics, emphasizing that law enforcement should be independent of the White House or political figures. He called for enhanced accountability and prevention of financial misconduct, suggesting that the SEC and CFTC should strengthen coordination, and even consider merging, to improve the efficiency of digital asset and predictive market regulation; in the short term, sharing office space could enhance collaboration more than formal agreements.

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