Regulators to Discuss Bitcoin Futures Trading
The CFTC announced that they will meet on Jan. 31 to discuss the trading of cryptocurrency futures contracts.
“With the rapid development of financial technology products, including cryptocurrencies, and the corresponding demand for new and novel price discovery and risk management tools, the CFTC is poised to utilize its authority and expertise to ensure that the markets we oversee innovate responsibly within an appropriate oversite framework,” said CFTC Commissioner Rostin Behnam. The agency’s technology & risk committees will meet to discuss the self-certification process for such derivative contracts, focusing on “oversight, surveillance, and monitoring” of listed cryptocurrency derivatives.
The meeting comes after the launch of bitcoin futures by the CME & CBOE exchanges. Regulators & financial institutions have been very wary of cryptocurrency futures, due to the price volatility.
The SEC and the NASAA have both issued warnings about the potential dangers of investing in cryptocurrencies. The CFTC is currently the regulatory authority of cryptocurrencies in the U.S. and treats them as commodities. The SEC has also begun to regulate portions of the market, however they focus primarily on what they believe to be unregistered securities masquerading as cryptocurrencies.