{"id":62214,"date":"2022-05-30T12:58:14","date_gmt":"2022-05-30T09:58:14","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=62214"},"modified":"2025-09-05T16:37:59","modified_gmt":"2025-09-05T13:37:59","slug":"cftc-commissioner-compares-cryptocurrencies-to-lottery-tickets","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/cftc-commissioner-compares-cryptocurrencies-to-lottery-tickets\/","title":{"rendered":"CFTC commissioner compares cryptocurrencies to lottery tickets."},"content":{"rendered":"

Investing in crypto assets should be treated as buying lottery tickets, with the potential for both gains and losses. CFTC<\/span> Commissioner Caroline Pham told CNBC<\/a> in an interview.<\/p>\n

In her view, many creators of crypto projects do not disclose details to investors who buy assets in expectation of “guaranteed profit.”<\/p>\n

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“You can get rich, or you can lose all your funds,” Pham said.<\/p>\n<\/blockquote>\n

Pham mentioned collapse of the Terra ecosystem<\/a>. She called the incident a tragedy for the entire market and a test of its resilience, noting that the collapse of the algorithmic stablecoin TerraUSD (UST) further proves the revival of “shadow” banking.<\/p>\n

Pham expressed hope that investors would assess risks more thoroughly before buying such assets. In her view, the crypto market should be subject to traditional financial laws.<\/p>\n

\n

“It\u2019s always faster to establish a regulatory base when one already exists. You\u2019re simply talking about expanding the regulatory perimeter around new, original products,” said the Commission spokeswoman.<\/p>\n<\/blockquote>\n

Pham called for removing ambiguity around “stablecoins”. The commissioner added that Terra’s collapse is enough to push lawmakers to “adopt the right” regulatory framework.<\/p>\n

In January, acting Comptroller of the Currency Michael Hsu allowed<\/a> a “banking panic” scenario among stablecoin holders.<\/p>\n

Later, the OCC head said there was a need to bring stablecoin issuers on par with<\/a> depository institutions with mandatory deposit insurance.<\/p>\n

In May, Hsu confirmed the regulator’s careful and prudent approach to cryptocurrencies<\/a>. He said that the decline in market capitalization after Terra’s collapse did not lead to the “contagion” of traditional banking and finance.<\/p>\n

Subscribe to ForkLog news on Telegram: ForkLog Feed<\/a> \u2014 the full news stream, ForkLog<\/a> \u2014 the most important news, infographics and opinions.<\/p>\n","protected":false},"excerpt":{"rendered":"

Investing in crypto assets should be treated as buying lottery tickets, with the potential for both gains and losses. CFTC Commissioner Caroline Pham told CNBC in an interview.<\/p>\n","protected":false},"author":1,"featured_media":62215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[994,36],"class_list":["post-62214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ctfc","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=62214"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62214\/revisions"}],"predecessor-version":[{"id":62216,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/62214\/revisions\/62216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/62215"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=62214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=62214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=62214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}