The US Commodity Futures Trading Commission has introduced interest to enable the business of “Spot Crypto Asset Contracts”.
The invitation is part of CFTC’s “Crypto Sprint” initiative, which is to implement the recommendations of President Donald Trump’s working group on digital asset markets, including 18 recommendations.
“CFTC is ahead to enable the immediate trade of digital assets at the federal level in coordination with SECUS Crypto,” CFTC acting president Caroline Fam wrote in a statement on Monday.
“There is a clear and simple solution.
A spot Crypto Assist contract will solve a futures, style, listed contract that reflects the prices of Crypto and is traded on the CFTC-related contract Marke (DCM).
CFTC is generally limited to regulating derivative products compared to goods, except for cases of fraud and market manipulation.
CFTC wants public input
The CFTC is specificly seeking a response to the application of Section 2 (c) (2) (d) of the Commodity Exchange Act and the application of Part 40 of the CFTC rules.
Section 2 (c) (2) (D) requires that retail commodity transactions include leverage, margin, or funded, conducted on a CFTC-renovated DCM, providing a legal framework to regulate leverage lead spot crypto contracts.
Part of CFTC regulations concerns the rules for 40 DCM, including registration and compliance requirements and enforcement provisions.
The CFTC is also demanding input on possible implications under security laws, such as an SEC framework trading can apply to non-security assets that can form an investment contract.
The public comment submission period will be closed on August. 18.
18 recommendations to CFTC
The report of the Crypto Policy recommendations of the Working Group, released last week, advised CFTC to make more outline of how cryptocurrency can be considered items; How its registration requirements work with decentralized finance market participants; And provide guidance to CFTC-reputed institutions that they can do with crypto.
Connected: US Department of Justice, CFTC End Polymarket Investigation – Report
Another major function is how to make Rup to adjust the blockchain-based derivative
An additional 16 recommendations see that CFTC was tied to other finish agencies, such as another and treasury.
CFTC is currently small on three commissions
CFTC is currently working with only two commissioners: Pham and Kristin N. Johnson, who is expected to depart later this year.
Former CFTC chairman Rostin Behnam resigned on January 20, 2025, when the Trump administration is ending, which in the end of May, both summer Mercenger and Christie Goldsmith Romero stepped down.
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