CFTC not ready for crypto's expansion, expert warns

CoinDesk's The Policy Protocol hosts Rebecca Rettig and Renato Mariotti dig into the New York Times investigation of the CFTC and Kalshi's latest lawsuit against Minnesota before sitting down with Aaron Klein, senior fellow at the Brookings Institution. Klein argues that independent financial regulators have been turned into "subsidiaries of the White House," warns that the CFTC is not structurally up to the jurisdiction CLARITY would hand it, and makes the case that the SEC and CFTC should be merged. He also unpacks lessons from Dodd-Frank and the savings-and-loan crisis. Plus, Rebecca and Renato debrief on the CFTC staffing debate and name House Agriculture Chairman GT Thompson and Ranking Member Angie Craig as their People of the Week for their bipartisan push to fill out the CFTC commission.

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Timecodes:

00:00 Welcome to The Policy Protocol

00:43 All Roads Lead to the CFTC

01:22 Unpacking the NYT's CFTC Investigation

02:41 Pendulum Swing: Reading the NYT in Context

05:11 Why the CFTC Needs Funding and Personnel

06:52 Aaron Klein Joins the Show

07:30 The History of the CFTC and the Great Salad Oil Swindle

08:10 Independent Regulators as White House Subsidiaries

09:39 Dodd-Frank Lessons for the CLARITY Era

11:47 The Case for Merging the SEC and CFTC

13:21 PolyMarket, Soft on Financial Crime, and CZ/Binance

15:06 SEC-CFTC Office Sharing and the Value of MOUs

18:16 Renato and Rebecca Debrief on the CFTC's Future

21:45 Trump on Prediction Markets and Expanded Jurisdiction

22:30 People of the Week: GT Thompson and Angie Craig

24:26 Tribute to Ondo CEO Nathan Allman

25:01 Closing Thoughts and Sign-Off