Former Commodity Futures Trading Commission (CFTC) acting chair Caroline Pham says existing U.S. commodity laws give the agency broad authority over cryptocurrency markets. Her comments follow an October 5 proposal for new rules covering leveraged retail crypto trading.
Pham made the remarks during an interview at TOKEN2049 Singapore. She now serves as MoonPay’s chief legal officer and chief administrative officer.
She argued that the Commodity Exchange Act provides a legal foundation for regulating several digital asset activities without requiring Congress to establish an entirely new system. However, the law does not give the CFTC unrestricted control over every cryptocurrency transaction.
Her comments come after the CLARITY Act failed to advance in September. Meanwhile, federal regulators continue exploring their existing powers while lawmakers consider further legislation.
CFTC Explores New Rules for Retail Crypto Trading
The Commodity Exchange Act defines commodities broadly. Its definition covers goods, services, rights and financial interests that can support derivatives contracts. The law specifically excludes onions and motion picture box office receipts.
According to Pham, this broad definition allows the CFTC to respond to emerging financial products. She cited artificial intelligence computing capacity as a possible basis for future derivatives contracts.
Nevertheless, the agency's authority depends on the activity involved. Its powers differ across derivatives markets, fraud investigations, market manipulation and certain leveraged retail transactions.
On October 5, the CFTC announced an advance notice of proposed rulemaking covering Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets. The agency is seeking public feedback before developing detailed requirements.
Under the proposed approach, eligible cryptocurrency businesses could seek federal oversight through registered trading venues. Certain firms offering leveraged retail crypto products could apply for a designated contract market registration.
Current CFTC Chairman Michael Selig has also pursued new rules. He has said existing law allows the agency to create a federal registration option for certain services. However, Congress would need to act to require all cryptocurrency exchanges to register with the commission.
Pham welcomed stronger exchange supervision as a way to improve protections for American retail traders. The proposal builds on the Crypto Sprint initiative she introduced in August 2025, which addressed spot trading, continuous markets and perpetual derivatives.
Pham Questions Stablecoins for Wholesale Settlement
Beyond cryptocurrency trading, Pham questioned whether stablecoins could meet the settlement needs of major financial institutions. She estimated that immediate blockchain settlement of an entire trading day's obligations could require approximately $15 trillion in available cash.
Traditional financial markets often use net settlement. This process allows banks and counterparties to offset their obligations before transferring the remaining balances.
Pham argued that tokenized bank deposits could support blockchain-based payments while preserving existing banking relationships. These deposits represent commercial bank money recorded through digital systems.
She expects tokenized deposits to play an important role in wholesale financial markets. Meanwhile, she identified stablecoins as useful for payments between parties that do not know or trust each other, particularly when asset delivery and payment occur together.
MoonPay has also expanded its institutional services. In June 2026, the company launched MoonPay Trade, a platform designed to connect financial institutions with blockchain networks, tokenized assets and digital asset settlement services.
Read More: CFTC Eyes Spot Crypto Trading on Futures Markets, Public Opinion Due on August 18
Tokenized Stocks Could Expand by 2028
Pham predicts that the New York Stock Exchange and Nasdaq could support meaningful trading in tokenized shares by approximately 2028. She said genuine tokenized stocks should preserve shareholder rights, including voting privileges and corporate governance participation.
The SEC has already introduced a limited framework for tokenized U.S. stocks. On September 17, the commission approved temporary, conditional exemptions for eligible tokenized securities venues operating through permissioned automated market makers and liquidity pools.
The framework includes requirements for shareholder rights, trading restrictions and safeguards against conflicts with existing market rules.
In September, Nasdaq announced an agreement to invest $100 million in Payward, the parent company of Kraken. The companies are developing the Nasdaq Equity Tokens initiative, which they expect to launch in the second quarter of 2027, subject to development and regulatory requirements.
Meanwhile, Intercontinental Exchange, the NYSE's parent company, and OKX are pursuing another tokenization project. Their OKXICE venture has sought SEC approval to offer tokenized shares of 63 NYSE-listed companies.
Pham also expects clearer regulations to encourage businesses to use non-fungible tokens for memberships, customer rewards and loyalty programs. However, these remain potential applications rather than confirmed policy outcomes.
The SEC's tokenized stock framework remains subject to operating conditions. Separately, the commission's proposed Regulation Crypto Assets rule has an October 20, 2026, public comment deadline.
Conclusion
Caroline Pham argues that existing commodity laws provide a foundation for broader CFTC oversight of cryptocurrency markets. The agency is developing rules for leveraged retail trading, while tokenized deposits could support institutional settlement. Pham also expects tokenized stocks to gain wider adoption by 2028, subject to regulatory developments.