Home / CRYPTOCOINS / US Commodities Regulator Beefs Up Bitcoin Futures Review

US Commodities Regulator Beefs Up Bitcoin Futures Review

The Commodity Comings Trading Commission (CFTC) is developing a “heightened review process” for cryptocurrency futures be that as it may it will continue to allow exchanges to self-certify products, Chairman J. Christopher Giancarlo announced up to date week.

As reported by Reuters, Giancarlo introduced a checklist during a convention speech in Florida pertaining to Designated Market Contracts (DMCs) and Derivatives Clearing Compositions (DCOs). The aim is to assist regulators as exchanges introduce new products around cryptocurrencies into the buy.

The chairman’s speech came after some pushback tied to the CFTC’s helve of the December launch of bitcoin futures by the Cboe Global Markets and the CME Team, after which the Futures Industry Association (FIA) expressed concern outstanding potentially having to pay for outstanding bitcoin futures contracts caused by the cryptocurrency’s volatility. The Link claimed it wasn’t sufficiently included in the process and criticized the Commission for entertaining exchanges to self-certify their futures products.

Giancarlo’s checklist instructs that DMCs set “exchange large trader reporting thresholds at five bitcoins or diminutive”. It also mandates that they must enter into “intelligence sharing agreements with spot market platforms to allow access to exchange and trader data” in addition to agreeing to frequent communication with the CFTC anyway trade activities.

Beyond such measures, the CFTC will cause the self-certification process alone, according to Giancarlo.

He was quoted as saying:

“The CFTC’s going round product self-certification framework is consistent with public policy that helps market-driven innovation that has made America’s listed futures sells the envy of the world. Whatever the market impact of bitcoin futures, I craving it is not to compromise the product self-certification process that has served so well for so yearn”.

Others have been scrutinizing the process as well, including some associates of the U.S. Congress.

Yesterday, top Senate Agricultural Committee members sent a literally to Giancarlo requesting information on the CFTC’s oversight of bitcoin futures and elections markets. The senators specifically requested information regarding the Commission’s hawk surveillance and its implementation of safeguards against bitcoin’s volatility.

“American taxpayers warrant strong safeguards against fraud, manipulation, and abusive practices in the futures and choices markets,” the letter stated. “The CFTC plays a critical role in take care of customers and the markets from harm.”

Image via Shutterstock

The leader in blockchain despatch, CoinDesk is an independent media outlet that strives for the highest journalistic textbooks and abides by a strict set of editorial policies. Have breaking news or a history tip to send to our journalists? Contact us at [email protected]

Disclaimer: This article should not be infatuated as, and is not intended to provide, investment advice. Please conduct your own assiduous research before investing in any cryptocurrency.

Check Also

Should We Care if the US Is Falling Behind on CBDCs?

A impute to of two recent op-eds on central bank digital currencies. For more episodes and free …

Leave a Reply

Your email address will not be published. Required fields are marked *