2 weeks ago
The US Commodity Futures Trading Commission has launched an inaugural to alteration the trading of “spot crypto plus contracts” connected CFTC-registered futures exchanges.
The invitation is part of the CFTC’s “crypto sprint” inaugural to instrumentality recommendations from President Donald Trump’s Working Group connected Digital Asset Markets, which included 18 recommendations.
“The CFTC is afloat velocity up connected enabling contiguous trading of integer assets astatine the Federal level successful coordination with the SEC’s Project Crypto,” wrote the CFTC’s Acting Chair Caroline Pham successful a connection connected Monday.
“There is simply a wide and elemental solution the CFTC tin instrumentality now.”
Source: Caroline PhamA spot crypto plus declaration would lucifer a futures‑style, listed declaration that mirrors spot crypto prices and is traded connected a CFTC-registered designated declaration marketplace (DCM).
The CFTC is usually constricted to regulating derivatives products alternatively than commodities, but successful cases of fraud and marketplace manipulation.
CFTC seeks nationalist input
The CFTC is specifically seeking feedback connected the exertion of conception 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of CFTC regulations.
Section 2(c)(2)(D) requires that retail commodity transactions involving leverage, margin, oregon financing beryllium conducted connected a CFTC-registered DCM — providing a ineligible model for regulating leveraged spot crypto contracts.
Part 40 of the CFTC Regulations concerns rules for DCMs, including registration and compliance requirements and enforcement provisions.
The CFTC is besides seeking input connected imaginable implications nether securities laws, specified arsenic however an SEC model mightiness use to trading non-security assets that whitethorn represent an investment contract.
The nationalist remark submission play volition adjacent connected Aug. 18.
18 recommendations to CFTC
The Working Group’s crypto argumentation recommendations report, released past week, advised the CFTC to much intelligibly outline however cryptocurrencies whitethorn beryllium considered commodities; however its registration requirements would enactment with decentralized finance marketplace participants; and supply guidance to CFTC-regulated entities connected what they tin bash with crypto.
Related: US Justice Department, CFTC extremity Polymarket investigations — Report
Another large task is considering however to amend rules to accommodate blockchain-based derivatives.
An further 16 recommendations concerning the CFTC were tied to different fiscal agencies, specified arsenic the SEC and the Treasury.
CFTC presently abbreviated connected 3 commissioners
The CFTC is presently operating with conscionable 2 commissioners: Pham and Kristin N. Johnson, who is expected to depart aboriginal this year.
Former CFTC Chair Rostin Behnam resigned connected Jan. 20, 2025, erstwhile the Trump medication took over, portion Summer Mersinger and Christy Goldsmith Romero some stepped down successful precocious May.
Meanwhile, Trump’s prime for imperishable seat — Brian Quintenz — remains successful limbo aft the White House intervened to postpone a Senate ballot connected his information past week.
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