Kristin Johnson, the committee of the Commodity Futures Trading Federation (CFTC), urged the US Congress to "fill the gap in the regulatory level of the encrypted spot trading market" according to the law

On January 21, Johnson delivered a speech at the Digital Currency Conference at the University of Connecticut, giving a series of amendments to enable CFTC to carry out "efficient financial due diligence" on companies (including encryption companies) that expect to recover the physical objects regulated by CFTC.

The operation specialist also hopes to expand the power of the product regulatory authority to enhance customer maintenance, avoid liquidity crisis and reduce the benefit transmission.

One of the implicit changes is undoubtedly to grant the product regulatory authority a new right to investigate all companies that want to buy 10% or more of the shares of CFTC's application for registration in the exchange or clearing house.

Johnson explained the case of LedgerX, a derivatives exchange, which became a branch of FTX on August 31, 2021, and is currently affected by the bankruptcy of Crypto Exchange.

The committee pointed out that the regulatory authority has not yet carried out financial due diligence on any enterprise that chooses to purchase the business. During the sales process of the exchange, the regulatory authority has only one passenger.

Johnson also mentioned the combination problem of customer assets, which is also one of the most surprising complaints after the collapse of FTX. He called for the supervision of the responsibility and obligation of encryption companies to protect customer assets.

Johnson pointed out that another gap was the risk management process, and pointed out that after the main encryption operation was poor, such as FTX:

"The interconnection between encryption enterprises is aggravated by the sensitive or non-existent risk control, the failure of corporate governance structure and the benefit transmission of some enterprises, which increases the probability of distress."

The operation specialist believes that in the increasingly diversified market, the current "antitrust law and regulatory framework are likely to prove to be too limited", but instead believes that "tailored, efficient governance and risk supervision and control"