CFTC Commissioner: Average Retail Investor Protection Should Be Different Than Millionaires

Decrypt | Alys Key | Dec 1, 2022

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The CFTC chief has proposed that the average crypto investor should get different protection from professional and high-net-worth individuals.

  • In remarks prepared for a conference in Singapore, Commodity Futures Trading Commission (CFTC) commissioner Christy Goldsmith Romero said the current regime’s definition of a “retail investor” is too broad, covering everything from average households to millionaires and hedge funds.
  • She added that she was not seeking to cut off the average investor’s access to the markets altogether but would seek public input on what kinds of extra protections should be afforded to these users. Initial ideas include easy-to-understand disclosures and limitations on leverage.

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  • She was critical of the shift towards giving users direct access to the markets via trading apps, saying that a broker traditionally adds an extra layer of protection for the customer.  I caution against market structures that remove a broker’s duties to retail customers without a full assessment of what will be lost,” she said.
  • Romero also called for her agency to invoke “heightened supervision” of crypto exchanges, adding she had been calling for such a move internally for months.

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