CFTC proposes to require crypto exchanges to segregate their own and client assets
The initiative is designed to prevent situations similar to the FTX collapse
14.12.2023 - 09:05
213
2 min
0
What’s new? The US Commodity Futures Trading Commission (CFTC) has proposed a rule to strengthen investor protection when conducting transactions through derivatives clearing organizations (DCOs). Thus, DCOs registered with the commission, including cryptocurrency DCOs, would be required to segregate customer funds from their own. As a result of the vote, CFTC members decided to put the initiative up for public discussion. The rule, if adopted, is expected to prevent situations similar to the collapse of the FTX crypto exchange, whose founder is accused of embezzling billions of dollars in client assets.
What else is known? Currently, the CFTC protects the funds of clients of trading platforms, but not clearing derivatives platforms. The initiative seeks to address this gap.
So, if a DCO faces a liquidity shortage, such as a crypto exchange receiving a large number of withdrawal requests, customer assets would be protected under the proposed rule. The rule would be enforced by requiring that customer funds be held in a separate account.
CFTC Chairman Rostin Behnam noted that over the past three years, many players have emerged in the crypto space “with new ideas about how markets function and what they view as the most efficient sort of execution models for their business.”
New bill to combat money laundering through cryptocurrencies has been introduced in the US Senate
If adopted, decentralized services will be obliged to collect customer information
Earlier, Behnam also recognized that there is competition between his agency and the Securities and Exchange Commission (SEC) for control over the cryptocurrency sector, which hinders the implementation of regulation. However, he said that most cryptocurrencies could fall under the definition of a commodity, which contradicts the previously voiced position of SEC Chairman Gary Gensler.
Useful material?
Telegram 
Twitter Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Cryptocurrency rates
-
Bitcoin
$99 541
BTC
+1.19%
-
Ethereum
$3 297.68
ETH
-1.73%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.42
XRP
+18.26%
-
Dogecoin
$0.399738
DOGE
+3.67%
-
Cardano
$0.963297
ADA
+19.48%
-
Bitcoin Cash
$489.63
BCH
+1.11%
-
Stellar XLM
$0.319909
XLM
+27.38%
-
Polkadot
$6.36
DOT
+8.82%
-
Litecoin
$90.79
LTC
+1.89%