The Commodity Futures Trading Commission (CFTC) has recently made a significant announcement that is set to change the way it regulates the cryptocurrency market. In a statement released on February 4th, Acting CFTC Chair Caroline Pham declared that the commission would be shifting away from its previous approach of “regulation by enforcement.”

This move marks a major shift in the CFTC’s stance towards the cryptocurrency industry, which has been met with both praise and criticism. The commission has been known for its strict enforcement actions against companies and individuals involved in fraudulent or illegal activities in the crypto space. However, this approach has also been criticized for hindering innovation and growth in the industry.

Under the new approach, the CFTC will focus on providing clear guidelines and regulations for the cryptocurrency market, rather than relying on enforcement actions to shape the industry. This is a welcome change for many in the crypto community, who have long called for more clarity and certainty in the regulatory landscape.

Pham emphasized that the CFTC’s goal is to foster responsible innovation and promote market integrity, rather than stifling growth through strict enforcement. She also stated that the commission will continue to take action against fraudulent and manipulative activities in the market, but will do so in a more targeted and transparent manner.

This announcement has been met with positive reactions from industry leaders and experts, who see it as a step towards a more mature and sustainable crypto market. It is also seen as a positive sign for the potential approval of a Bitcoin exchange-traded fund (ETF), which has been a hot topic in the industry for years.

Overall, the CFTC’s decision to shift away from regulation by enforcement is a significant development that could have a major impact on the cryptocurrency market. It remains to be seen how this new approach will play out, but it is certainly a step in the right direction towards a more transparent and regulated industry.