U.S. CFTC joins SEC in proposing crypto regulations, though spot-market gap lingers
Source: CoinDesk ·
From the source
The derivatives regulator is proposing two rules meant to cover the waterfront of crypto activity and exchanges, as long as it's not simple, direct trading. The Commodity Futures Trading Commission is proposing a pair of rules on Monday to establish U.S. cryptocurrency oversight under its powers to regulate leveraged and margin-dependent trades, trying to fill in regulatory uncertainties left by the inability of Congress to finish the job of passing a crypto law. The U.S. derivatives agency is pursuing two regulatory pathways it intends as a "comprehensive regulatory framework," according to agency officials — one that directly handles transactions and another that governs the firms hosting the activity. The latter will establish a new category of platforms known as crypto asset markets (CAMs). Crypto activity associated with leverage, margin or financing would fall into the CFTC's regulatory world under the rules. So, if traders want to use borrowed funds to amplify their positions,…