CFTC issues digital asset clearing warning; agency member calls for rulemaking

The U.S. Commodities and Futures Trading Commission (CFTC) issued a informing astir risks related to the clearing of integer assets connected May 30.

Clearing risks

The applicable notice says that the CFTC’s Division of Clearing and Risk (DCR) has seen derivatives clearing organizations (DCOs) and applicants grow their offerings. Some of those offerings are related to integer assets, it said.

The DCR said that it is focused connected “potentially heightened risks” related to those clearing activities and instructed DCOs to place and negociate said risks.

The part specifically mentioned cybersecurity requirements, struggle of interest, and the carnal transportation of integer assets arsenic areas of focus.

Commissioner urges for rulemaking

Although today’s announcement simply provides details connected the CFTC’s existing areas of regulation, 1 CFTC subordinate has suggested it should pb to caller rulemaking.

CFTC Commissioner Kristin Johnson said the existent announcement demonstrates that determination is an “increasingly urgent need” for the CFTC to statesman a rulemaking process astir the risks connected to “crypto clearing activities.”

She warned that crypto-commodity derivatives clearing models could flight regularisation unless the CFTC introduces parallel regularisation akin to that successful different markets. If specified regulations are not applied, regular investors could beryllium exposed to high-risk platforms with fewer lawsuit protections, Johnson warned.

Though the CFTC could grow its authorization implicit cryptocurrency, the bureau has made it wide that it does not mean to modulate each crypto markets.

CFTC president Rostin Benham recently said that the CFTC intends to modulate cryptocurrency commodities arsenic opposed to currency markets.

The station CFTC issues integer plus clearing warning; bureau subordinate calls for rulemaking appeared archetypal connected CryptoSlate.