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The Commodity Futures Trading Commission (CFTC) has released a program to examine the listing of spot crypto asset contracts on registered futures exchanges, also known as designated contract markets (DCMs). The move would be in line with suggestions posted in a recent White House report on digital assets.
Acting Chairman Caroline Pham announced the initiative on Monday, seeking the opinion of stakeholders and the community on crypto market regulation using existing CFTC crypto rules. Public comments to the agency will be accepted only till August 18. The move will support increased regulatory clarity, which is a major concern in the emerging digital asset ecosystem.
This initiative is the initial phase of the CFTC's new program, Crypto Sprint, which aims to execute the recommendations of the Presidential working group on digital assets. The report suggested that the crypto spot markets falling within the commodity frequency should have direct authority over the CFTC regulation.
The CFTC project has been operating side-by-side with that of the Securities and Exchange Commission (SEC), known as Project Crypto. That initiative is seeking to modernize securities rules in reaction to on-chain finance revenue. SEC Chair Paul Atkins has stated that Project Crypto will deal with rulemaking in areas such as digital asset custody, token distributions, and secondary market trading.
Pham highlighted the measures that the CFTC would take through the release of a public statement that stressed the affinity between the CFTC and the SEC in pursuing collective regulatory objectives. These objectives comprise the coordination of leadership roles, regulatory avoidance of duplication of these roles, and market effectiveness.
The mixed strategy will focus on fostering the development of a digital asset's trading area without excluding investor protections. Both agencies have kept exploring models that would integrate conventional financial management within the new blockchain-based markets.
Market participants are encouraged to participate in the consultation process. CBDC informed that stakeholders' views will factor into how regulatory measures concerning DCMs that provide spot crypto trading will be approached in the future.
This endeavor may also lead to extended availability of regulated products in the digital asset space, market transparency, and additional trading opportunities via accredited futures exchanges. This work could form the basis of the future role the US regulators play in regulating digital asset infrastructure.
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