CFTC Welcomes Harry Jung as Acting Chief of Staff

The CFTC’s official communication reveals that Jung will retain his duties as Senior Advisor to Caroline Pham and continue his involvement with the Global Markets Advisory Committee. This step underscores the agency’s intent to solidify its leadership in digital asset oversight while differentiating its regulatory scope from the SEC.

SEC vs CFTC — Understanding Their Jurisdictions

While the SEC regulates securities markets, focusing on investor protection and transparency for assets like stocks and bonds, the CFTC’s role lies in managing commodity futures and derivatives markets. The SEC operates under the Securities Act, while the CFTC enforces the Commodity Exchange Act to ensure fair and efficient trading in assets like futures and options.

The distinction between the SEC and CFTC becomes murky when regulating crypto assets. Bitcoin and Ethereum, for example, are labeled as “commodities” by the CFTC due to their use as payment or value storage. Conversely, tokens issued through ICOs can be considered “securities” under SEC guidelines if they involve investments made with profit expectations.

This regulatory gray area has resulted in overlapping jurisdiction and frequent disagreements between the two agencies. Without clear legislative definitions, both regulators are left to navigate the crypto market with conflicting approaches. Jung has consistently emphasized the need to define CFTC’s role more precisely in this evolving sector.

Who is Harry Jung and what’s his background?

Harry Jung became part of the CFTC in 2023, bringing with him extensive experience from his tenure at Citigroup. As Chief Administrative Officer and Head of Capital Markets Regulation, Jung led numerous initiatives related to digital asset compliance, collaborated with global regulatory authorities, and provided executive leadership with strategic guidance on market trends. His expertise also extended to managing cross-industry regulatory initiatives and designing forward-thinking engagement strategies.

Harry’s portfolio of experience includes a role at Morgan Stanley, where he developed frameworks for innovative financial asset management strategies and ensured internal compliance through detailed audits. He also served at FINRA (Financial Industry Regulatory Authority), where he led broker-dealer evaluations with a focus on securities trading compliance.

Renowned for his expertise in cryptography and digital asset management, Harry Jung has worked closely with leading figures in the cryptocurrency field. His new role at the CFTC underscores the agency’s drive to align with the demands of digital finance by appointing skilled professionals adept at addressing industry-specific challenges. This decision also aligns with Caroline Pham’s focus on fortifying crypto regulations through the recruitment of insiders with a thorough grasp of the market’s nuances.