Washington [US], October 6 (ANI): The US Commodity Futures Trading Commission (CFTC) has begun the process of establishing a comprehensive regulatory framework for crypto asset transactions, seeking public comments on rules covering retail commodity transactions involving crypto assets.
The CFTC on Monday published an Advanced Notice of Proposed Rulemaking (ANPRM), seeking views on how it can establish “fit-for-purpose” rules for crypto asset transactions covered under Section 2(c)(2)(D) of the Commodity Exchange Act. The move could form the basis for future rulemaking governing crypto asset markets.
CFTC Chairman Michael S. Selig said the initiative was aimed at providing greater clarity and certainty to market participants while strengthening consumer protections.
“The American people deserve clarity, certainty, and consumer protections in the crypto asset markets and the agency is committed to delivering this by incorporating crypto asset transactions into its uniform national market regulatory framework,” Selig said.
The CFTC said the proposed framework would seek to prevent abusive practices in crypto asset markets and establish a uniform national regulatory regime for the transactions covered by the notice.
The CFTC is also seeking views on providing market participants with crypto-specific information on certain regulatory requirements and commonly accepted industry practices that it considers compliance best practices based on its experience since 2014.
Another key area under consideration is the creation of a purpose-built category of designated contract market registration called a “crypto asset market”, specifically designed for retail commodity transactions involving crypto assets.
Selig further said the agency's approach would focus on preventing misconduct rather than relying only on enforcement after violations occur.
“Under my leadership, the Commission will take every necessary step to establish regulations that are designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX,” he said.
The CFTC said information and comments received through the consultation will be used to inform potential future agency action, including possible rulemaking concerning Section 2(c)(2)(D) and crypto asset transactions.
Market participants and other stakeholders will have 60 days from publication of the notice in the Federal Register to submit written comments. (ANI)
CFTC moves to establish comprehensive crypto regulatory framework, seeks public comments
