​CFTC commissioner proposes two-tier regulatory system While | Altcoin Holder

​CFTC commissioner proposes two-tier regulatory system

While speaking at a conference in Singapore, Christy Goldsmith Romero of the CFTC suggested that the current notion of a retail investor encompasses a wide range of individuals, from the largest funds and billionaires to the average consumer.

She suggested that the CFTC needs to develop a conceptually new regulatory system to protect the rights of retail investors as much as possible. What is optimal for a large fund could be disastrous for ordinary users who want access to many instruments but cannot afford to take significant losses, Goldsmith Romero said.

It was stressed that the CFTC does not seek to block average investors from having access to different asset classes. However, the regulator will actively explore methods and strategies that will protect the rights of retail consumers. It proposed to implement a so-called two-tier regulatory system.

The idea is that the CFTC would have two categories of investors with different financial capabilities. Goldsmith Romero also said brokers would need to educate their clients about potential risks and limit the amount of leverage available to retail investors.