CFTC Withdraws 2018 and 2023 Advisories on Crypto Derivatives
- CFTC withdrawal simplifies crypto futures listings for firms.
- Withdrawal ensures consistent regulation of digital asset derivatives.
- FDIC allows banks to engage in crypto activities with risk management.
The Commodity Futures Trading Commission (CFTC) has decided to scale back its scrutiny on risks related to digital asset trading and clearing. The agency has officially withdrawn two of its previous advisories issued in 2018 and 2023. This creates a standardized regulatory framework for digital assets and other products.
CFTC Scales Back Crypto Scrutiny
The CFTC decision impacts the 2023 digital asset clearing advisory and the 2018 trading advisory. The agency removed these advisories because it believes the market now has better hands-on experience with virtual currency derivatives. The agency maintains that original principles for derivative product listings which prevent product manipulation remain unaltered.
The CFTC aims to establish uniform regulatory standards for digital asset derivatives through the removal of these advisories. This development indicates that digital asset companies will find it easier to list crypto futures. The agency clarified that its removal of these advisories would not affect its responsibilities to monitor clearing procedures or prevent systemic risk in the market.
The agency stressed that it retained its responsibility to supervise clearing organizations and protect the integrity of financial transactions. The agency maintains its dedication to verify clearinghouse compliance with Commodity Exchange Act and related regulations. The CFTCs Division of Clearing and Risk stated that such withdrawal supports regulatory consistency across all commodities.
The CFTC maintains its dedication to enhance a secure and effective derivatives market for digital assets even after the withdrawal. The agency emphasized that it will continue to supervise clearing activities, with a major focus on system safeguards, settlement procedures and conflicts of interest. The CFTCs regulatory framework ensures effective management of systemic risks in the market.
Evolution of Digital Assets Regulations
The advisory withdrawal comes as the digital asset market demonstrates improved maturity. The CFTC believes its personnel possess adequate expertise with digital asset derivatives so they can proceed without these advisories. The CFTC demonstrates its confidence to regulate digital assets effectively without the need for supplementary specific guidance.
The Federal Deposit Insurance Corporation (FDIC) recently made updates about activities related to cryptocurrencies. The FDIC updated its policy to allows supervised entities to start crypto operations without prior approval if they can properly manage risks. The adjustment follows the increased acceptance and adoption of digital assets in the financial system.
The CFTC decided to withdraw these advisories because of changes in the digital asset regulations. The agency prepares to support innovation and ensure proper risk management as the market continues to mature. These actions show that the agency pursues a unified approach for digital asset regulation within the financial system.
Read more: https://www.tronweekly.com/cftc-withdraws-key-advisories-on-crypto/
Text source: TronWeekly
