CFTC
Senators Stabenow, Boozman introduce crypto bill that extends CFTC’s regulatory powers
United States Senate Agriculture Committee chair Debbie Stabenow and ranking member John Boozman introduced the Digital Commodities Consumer Protection Act bill on Wednesday. The bill has been expected for several months. Like the Digital Commodities Exchange Act (DCEA) introduced into the House of Representatives by members of the House Agriculture Committee in April, the new bill enlarges the role of the Commodity Futures Trading Commission (CFTC). The new bill is not the companion to the DCEA, however. According to the summary, the bill’s definition of digital commodities “includes Bitcoin and Ether and excludes certain financial instruments including securities,” which are regulated by the Securities and Exchange Commission (SEC). The bill mandates registration by t...
CFTC will remodel LabCFTC, education office to increase regulatory efficiency
The United States Commodity Futures Trading Commission (CFTC), the regulatory agency that shares the main crypto regulatory responsibility with the Securities Exchange Commission, will undergo restructuring to become more proactive and comprehensive, CFTC chair Rostin Behnam announced July 25. LabCFTC, which was described as “the focal point for the CFTC’s efforts to promote responsible fintech innovation,” will become the Office of Technology Innovation (OTI) and report directly to the chairman’s office. “We are now engaged in a more proactive and comprehensive effort across the agency to regulate these markets with the tools currently available to us,” Behnam said at a Brookings Institute webinar, adding, “Our core policy divisions are now directly addressing how the CFTC can lever...
The lasting agony of 3AC: Law Decoded, July 18-25
The late spring and summer months of 2022 would be remembered not only for their extreme temperatures across the globe but also for a crushing streak of large crypto companies falling apart. Terra Lab in May, Celsius in June and now, the lasting agony of a Singapore-based crypto hedge fund Three Arrows Capital (3AC). Technically, 3AC was ordered for liquidation by a court in the British Virgin Islands on June 27, but it was last week, which has seen some further developments around the firm. The liquidators of 3AC are brutally demanding access to the company’s Singapore headquarters due to the “virtual radio silence from the management/directors of the Company.” They believe the office may contain cold wallets or information on how to access 3AC trading accounts, which the liquidator...
SEC listing 9 tokens as securities in insider trading case ‘could have broad implications’ — CFTC
Caroline Pham, one of five commissioners with the United States Commodity Futures Trading Commission, or CFTC, has expressed concerns about the possible implications of a case the U.S. Securities and Exchange Commission, or SEC, brought against a former product manager at Coinbase. In a Thursday statement, Pham said the SEC complaint against former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi and associate Sameer Ramani “could have broad implications” beyond the case, given its labeling nine tokens as “crypto asset securities” falling under regulatory body’s purview. The complaint alleged that the Wahis and Ramani engaged in insider trading by using confidential information Ishan obtained from Coinbase with regard to which tokens would be listed on the exchange, in ord...
That’s ‘Sir’ Crypto Dad: French order knights former CFTC chair Chris Giancarlo
The French government has given former United States Commodity Futures Trading Commission chair Chris Giancarlo, also known as “Crypto Dad,” the equivalent of a knighthood. In a Tuesday tweet from Giancarlo, the former CFTC head said France’s National Order of Merit awarded him a Chevalier — the equivalent of a knighthood — in a ceremony at the French ambassador’s residence in Washington D.C. Those attending included current and former CFTC commissioners Rostin Behnam, Brian Quintenz, Christy Goldsmith Romero, Kristin Johnson, Caroline Pham, as well as Hester Peirce of the Securities and Exchange Commission. Merci for honor of l’Ordre National du Mérite at the Résidence de France before mes amis @CFTCbehnam @BrianQuintenz @HesterPeirce Dawn Stump Dan Berkovitz @CFTCcgr @C...
Not the best week for crypto lending: Law Decoded, June 20-27
Due to Celsius Network’s withdrawal suspension in mid-June, the very topic of crypto lending made its entryway to the acute issues list for the regulators. Last week, lawmakers and officials continued to raise the question of necessary action, with significant utterance belonging to one of the key European crypto skeptics, Christine Lagard. European Central Bank president got so impressed with the Celsius crisis that she coined the term “MiCa II,” referring to the main regulatory package for crypto in the European Union. Lagarde believes the new MiCa should include separate crypto-asset staking and lending guidelines. It’s not necessary to be a civil servant to discern the flaws of the current lending model, though. A hardcore Bitcoin (BTC) maximalist and Swan Bitcoin CEO...
Gensler appeals for ‘one rule book’ in negotiations with CFTC over crypto regulation
United States Securities and Exchange Commission (SEC) chair Gary Gensler is in talks with Commodity Futures Trading Commission (CFTC) officials on a “memorandum of understanding” on the regulation of digital assets. Together, the agencies can assure market integrity, Gensler told The Financial Times in an interview published Thursday. “I’m talking about one rule book on the exchange that protects all trading regardless of the pair — [be it] a security token versus security token, security token versus commodity token, commodity token versus commodity token,” Gensler told the newspaper. Gensler’s desire to be collaborative comes as a variety of legislative initiatives have been introduced to create a more comprehensive regulatory framework for digital assets. The Digital Commodity Ex...
Bad day for Binance with SEC investigation and Reuters exposé
The United States Securities and Exchange Commission (SEC) is investigating whether Binance Holdings broke securities rules when it launched its BNB token in an initial coin offering (ICO) five years ago, Bloomberg reported on June 6. Binance is the world’s largest crypto exchange, and BNB is the fifth largest cryptocurrency. The BNB ICO took place in July 2017 on several platforms, during the height of the so-called ICO boom, and the Binance exchange opened just days afterward. According to Bloomberg, citing unnamed people familiar with the matter, at least one U.S. resident claimed to have taken part in the ICO, which could be a crucial fact for an SEC case, if the agency chose to pursue one. The SEC has claimed most cryptocurrencies are securities and brought cases against a number of I...
Goldman Sachs reportedly eyes crypto derivatives markets with FTX integration
Goldman Sachs, one of the leading investment banks in the United States is reportedly trying to onboard some of its derivatives products into FTX.US crypto derivatives offerings. Goldman Sachs has been in talks with FTX over regulatory and public listing help, and aims to expand into crypto derivatives offering by leveraging some of its own derivatives tools and services, reported Barron’s. FTX.US, the U.S. subsidiary of global cryptocurrency exchange FTX is currently seeking to offer brokerage services for its derivatives offerings. This would allow the crypto exchange to handle the collateral and margin requirements internally rather than depending on “futures commission merchants” (FCMs). FTX.US president Brett Harrison said: “We have multiple FCMs already committed to integrating ...
Bankman-Fried faces down roomful of futures industry insiders at CFTC roundtable
FTX CEO Sam Bankman-Fried did a lot of talking at the United States Commodity Futures Trading Commission (CFTC) staff roundtable on non-intermediation Wednesday. He fielded questions and issues from 31 industry professionals about the FTX.US application to offer clearing of margined products, including crypto-based products, without a futures commission merchant (FCM) intermediary. Many participants felt the need to mention their devotion to innovation and declared that they do not see the proposed new technology as an “us versus them” situation. Joe Cisewski of Pantera Capital said that just six or eight clearing houses dominate the market at present, so new competition would not be out of place. Like many others present, he saw the need for more regulatory framework for this new tr...
Commissioner Kristin Johnson to sponsor CFTC Market Risk Advisory Committee
United States Commodity Futures Trading Commission (CFTC) commissioner Kristin N. Johnson was named the sponsor of the agency’s Market Risk Advisory Committee (MRAC) on Tuesday. She replaced CFTC chair Rostin Behnam in that role. Johnson was nominated to be a CFTC commissioner by U.S. President Joe Biden in September 2021, concurrent to the nominations of commissioner Christy Goldsmith Romero and acting chairman Behnam as the permanent chair. Johnson was sworn in on March 30. She moved into the position after spending over a decade as a law professor. Johnson is the author of academic papers in which she has advocated for stricter controls over cryptocurrency. Johnson said in a statement: “Having spent my career in risk management oversight, I appreciate the MRAC’s significant and cri...
CFTC commissioner appoints senior policy adviser experienced in digital asset regulation
In a Friday announcement, Pham said Keaghan Ames will be her counselor and senior policy adviser at the CFTC starting May 23. Ames worked at Credit Suisse for more than two years as vice president and head of U.S. regulatory policy, which included advising executives on digital assets regulation. He will be joining the CFTC from the Institute of International Bankers, where he has been the director of government affairs since July 2021. Sworn in as a commissioner in April, Pham is one of five heads serving at the CFTC under chair Rostin Behnam — all of whom were appointed by United States President Joe Biden. Pham is the latest commissioner to join the CFTC following the confirmation of Christy Goldsmith Romero, Summer Mersinger and Kristin Johnson. NEWS: CFTC Commissioner Pham Announces A...
