US derivatives watchdog weighs 24/7 action with crypto supervision on the horizon

Bitcoin is the crypto sector’s top asset and is also universally defined by US regulators and courts as a commodity, which puts it under jurisdiction for Commodity Futures Trading Commission. This agency is now seeking public comments on whether it should open the wider world of derivatives for trade around the clock, as already performed for Bitcoin and other digital assets.

Although CFTC is expected to be established as a crypto market regulator in the congress’s ongoing efforts to establish industry rules, the agency’s invitation to comments issued on Monday is not explicit digital assets surveillance. The request notes that “technological advances and market demand” pushes CFTC regulated companies against being able to handle transactions at all times.

“As I have long said, CFTC has to take a forward approach to displacements in the market structure to ensure that our markets remain vibrant and resilient while protecting all participants,” acting President Caroline Pham said in a statement. She was exploited by President Donald Trump to run the agency while waiting for Senate’s confirmation of her chairman nominees, Brian Quintenz.

Trade without downtime presents a number of challenges to US markets that are not used to it, according to the request, including “which management frameworks, exchange models and technologies would be necessary to ensure market integrity and operational resistance as well as compliance with all core principles, under a continuous trade model.” Such an extension would require companies to deal with live maintenance and technology levels and human monitoring of the systems and markets during the extended hours, which are problems that have already long struggled with digital assets.

CFTC would still need a change in the law before it could have direct authority over the actual spot market trading with Bitcoin and other symbols that are eventually not categorized as securities, which would obtain securities and exchange commission’s supervision. If the Agency is ultimately an important regulator of trade and of platforms and businesses that handle customers’ transactions, it is a space where 24-hour, seven-day activity is already the model.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top