A plan to control them all - Bitcoin and Ethereum scrutinized by the US CFTC

A plan to control them all - Bitcoin and Ethereum scrutinized by the US CFTC

By NassiroV | CryptoPlanet360 | 17 Jul 2020


Brian Quintenz sworn in as a Commissioner of the U.S. CFTC

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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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NassiroV
NassiroV

Hi, and welcome to my blogs :)! ​I’m Nassir, a thirty-something guy who loves to travel and write, especially about Crypto and Blockchain. I have been blogging and trading cryptocurrencies for a while. I hope that you find my articles beneficial to you.


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