CFTC Commissioner Dawn Stump asserted that market participants need more clarity on the regulatory authorities of federal agencies with respect to cryptocurrencies and digital assets.
In a keynote address at the FIA Expo, Ms. Stump:
- voiced concern at the persistent misunderstanding that the CFTC regulates cash market commodities, in addition to commodity derivatives, saying that (i) the confusion is rooted in part in the CFTC's enforcement authority concerning fraud and manipulation as to cash market commodities, and (ii) the antifraud authority does not mean the CFTC oversees cash or spot crypto markets "day-to-day";
- stated the CFTC's clearing rules should be updated to reflect the trend in new retail-focused derivatives clearing organizations that do not have an intermediary model; and
- reiterated the CFTC's responsibility under CEA Section 5c(c)(5)(C) ("Special rule for review and approval of event contracts and swaps contracts") to list such contracts if they (i) do not involve gaming, terrorism, assassination, war or unlawful activity or (ii) are not in contravention of the public interest, should they involve the aforementioned activities.
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