CFTC chief Christy Goldsmith Romero has proposed that the average crypto investor should get different protection from professional and high-net-worth individuals. Romero made the proposal in remarks prepared for a conference in Singapore.
2. The current regime’s definition of a “retail investor” is too broad, covering everything from average households to millionaires and hedge funds, according to Romero. Romero has proposed that the CFTC should have two categories of retail customers so that additional protections can be targeted to each group.
3. “What is safe and affordable for a millionaire or hedge fund is likely to be very different for regular people who want access to markets but cannot afford to lose everything,” she said. Romero 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 for additional protections include easy-to-understand disclosures and limitations on leverage.
