CFTC Commissioner Says Crypto Exchanges Are Keen on Federal Regulation

Summary

• The US Commodity Futures Trading Commission (CFTC) said it is advancing a cryptocurrency regulatory framework, and that major crypto exchanges are showing active interest in it.
• Commissioner Michael Selig said that under the new framework, exchanges already registered with the CFTC would be able to offer spot trading, and that new firms are also preparing to obtain the CFTC's single license.
• The CFTC said it proposed the framework to prevent unfair practices in digital-asset markets and unify trading rules at the federal level, and stressed that good-faith software developers should be protected while those responsible for fraud and other criminal conduct should be held accountable.

Forecast Trend Report by Period

Major cryptocurrency exchanges are showing strong interest in a digital-asset regulatory framework being advanced by the US Commodity Futures Trading Commission, CNBC reported on November 13.

Michael Selig, a CFTC commissioner, said in an interview that many major crypto exchanges are already registered with the agency to offer derivatives trading. Under the new framework, those exchanges would also be able to provide spot trading.

Interest is also rising among new entrants. Selig said some are preparing to register with the CFTC to obtain a single license rather than comply with separate regulatory regimes across all 50 states.

The CFTC proposed the crypto regulatory framework in October to curb unfair practices in digital-asset markets and unify trading rules at the federal level. The move followed the failure of the CLARITY Act in September.

Still, Democrats' capture of both chambers in the midterm elections could bring tougher congressional scrutiny of the CFTC's regulatory agenda starting next year. Selig said Congress would carry out whatever oversight it deems necessary and that the agency is prepared to answer any questions. He added that both parties should work together to protect good-faith software developers while holding those responsible for fraud and other criminal conduct accountable.

Uk Jin