CFTC Beefs Up Bitcoin Futures Review Process
Others are inspecting the process as well, including a few members of the U.S. Congress.
“The CFTC’s recent product self-certification framework is consistent with general policy that encourages market-driven innovation that has made America’s listed futures markets the envy of the world. No matter the market effect of bitcoin futures, I trust it is not to compromise the product self-certification process that has functioned well for so long”.
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Disclaimer: This report shouldn’t be chosen as, and is not intended to provide, investment information. Please conduct your own thorough investigation before investing in any cryptocurrency.
He was quoted as saying:
The Commodity Futures Trading Commission (CFTC) is creating a “increased review process” to get cryptocurrency futures though it is going to continue to allow exchanges to self-certify goods, Chairman J. Christopher Giancarlo announced weekly.
The chairman’s address came after some pushback tied to the CFTC’s management of the December release of bitcoin futures by the Cboe Global Markets along with the CME Group, and the Futures Industry Association (FIA) expressed concern over potentially having to pay for outstanding bitcoin futures brought on by the cryptocurrency’s volatility. The Association claimed it was not adequately included from the process and criticized the Commission for allowing exchanges to self-certify their stocks goods.
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Yesterday, leading Senate Agricultural Committee members sent a letter to Giancarlo requesting info on the CFTC’s supervision of bitcoin futures options markets. The senators especially requested information concerning the Commission’s market surveillance along with its own execution of shields from bitcoin’s volatility.
Giancarlo’s checklist requires that DMCs set “exchange large trader reporting thresholds at five bitcoins or less”. In addition, it warns that they need to enter “information sharing agreements with location market platforms to allow access to trade and trader data” along with agreeing to regular communicating with the CFTC regarding trade actions.
The purpose is to assist regulators as exchanges introduce new goods around cryptocurrencies into the market.
Beyond such steps, the CFTC will depart the self-certification process alone, according to Giancarlo.
“American citizens deserve powerful defenses against fraud, manipulation, and abusive practices at the futures and options markets,” the letter said. “The CFTC plays a critical role in protecting clients and the markets in injury.”