Investing in crypto assets should be treated like buying a lottery ticket that can be expected to win or lose. About this Commissioner CFTC Caroline Pham said in an interview with CNBC:

According to him, the creators of many cryptocurrency projects do not disclose detailed information to investors who buy assets on the basis of “guaranteed profits”.

“You could be rich or you could lose all your money,” Pham said.

The CFTC commissioner spoke about the collapse of the Terra ecosystem. He described the event as a tragedy for the entire market and its strength test, noting that the collapse of the algorithmic stablecoin TerraUSD (UST) once again proves that “shadow” banking is reviving.

Pham said he hopes investors will carefully consider the risks before purchasing such assets. According to him, traditional finance laws should apply to the cryptocurrency market.

“It’s always faster to create a regulatory framework while it already exists. “You’re just talking about expanding the regulatory environment around new, original products,” the commission representative said.

Pham called for the removal of uncertainty around “stable coins.” The commissioner added that Terra’s collapse was enough to force lawmakers to adopt the “right” regulatory framework.

In January, Michael Hsu, interim head of the Office of the Currency Controller (OCC) within the U.S. Treasury, allowed a state of “banking panic” among stablecoin holders.

Later, the head of the OCC announced the need to equate “stable coin issuers” with depository institutions with mandatory deposit insurance.

Recall that in May, Hsu confirmed the correctness of the regulator’s “careful and cautious” approach to cryptocurrencies. According to him, the fall in market value after Terra’s collapse did not lead to the “contamination of traditional banking and finance.”