- Spot crypto asset contracts are published on CFTC-registered designated contract markets (DCMs) and are similar to futures-style contracts.
- The CFTC extended the invitation as part of its “crypto sprint” effort to put into action the 18 recommendations.
To facilitate the trading of “spot crypto asset contracts” on futures exchanges licensed with the US Commodity Futures Trading Commission, an effort has been initiated by the commission.
The CFTC extended the invitation as part of its “crypto sprint” effort to put into action the 18 recommendations made by President Trump’s Working Group on Digital Asset Markets. Also, Caroline Pham, acting chair of the CFTC, said on Monday that the agency is working closely with the SEC’s Project Crypto. In order to facilitate the instant trading of digital assets on a federal level.
Seeking Public Feedback
Spot crypto asset contracts are published on CFTC-registered designated contract markets (DCMs). And are similar to futures-style contracts in that they reflect spot crypto prices. About the implementation of the Commodity Exchange Act and Part 40 of the CFTC rules, the CFTC is particularly interested in hearing comments about subsection (c)(2)(D).
Moreover, the legal basis for regulating leveraged spot crypto contracts is provided by Section 2(c)(2)(D).Which states that any retail commodities transaction involving leverage, margin, or financing must be performed on a CFTC-registered DCM.
The CFTC Regulations address DCMs under Part 40, which includes measures for enforcement, registration, and compliance. The Commodity Futures Trading Commission (CFTC) is looking for comments on possible securities law ramifications. Namely how an SEC framework may be used to trade non-security assets that could be considered an investment contract.
Furthermore, the deadline for public comments is August 18th. The report on crypto policy recommendations from the Working Group was released last week. The report urged the CFTC to clarify whether cryptocurrencies are commodities. Also, how its registration requirements would interact with participants in the decentralized finance market. And what CFTC-regulated entities can do with crypto.
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