The US financial environment is made up of two major groups: commodities and financial securities. The SEC - Security and Exchanges Commission - armed with its Howey Test classifies assets into two categories: financial securities - and others. Among others, we find commodities and futures - futures, regulated by the CFTC - Commodity Futures Trading Commission - which has just published its strategic plan for the period 2020-2024.
A 5-point strategic plan
The derivative regulator expressed its vision of the future in 5 points. Each point is subdivided into several strategic objectives, here are the main lines:
1- Strengthen the resilience and integrity of the derivatives market
2- Regulate the market to promote the interests of all Americans
3- Encourage innovation and improve the regulatory framework for innovative players
4- Be strict with those who break the rules
5- Focus on mission and improve operational efficiency
It is a beautiful declaration of intention that we have here, we hope it comes true. But what interests us is the third point of this strategic vision.
A “holistic framework” for digital assets
In this third point, dedicated to innovation, the CFTC considers the best way to supervise innovation. The American regulator believes that regulations must keep pace with innovation and even lead the dance, with a view to responsible innovation.
One of the strategic goals of the CFTC is to frame the conveniences of the 21st century. For this, it intends to build a holistic framework for cryptoactive agents. A holistic approach means looking at a set of things to better understand the individuals who make it up.
In our case, cryptographic commodities and derivatives of digital assets.
Bitcoin & Ether, in the same boat
However, we know that this framework will be applicable to cryptoactive considered by the CFTC as commodities, bitcoin and ether. For some time now, the CTFC has no longer pronounced on the classification of new digital assets as commodities.
We can therefore assume that the CTFC is more interested in products derived from digital assets and in those who offer them. The new regulations will certainly apply to exchanges offering derivative products. Among them, LedgerX, ErisX and Bitnomial, all three licensed with the CTFC in 2019-2020.
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