CFTC Moves to Address Industry Concerns Over Virtual Currencies -- Update
January 04 2018 - 12:26PM
Dow Jones News
By Gabriel T. Rubin
WASHINGTON -- The top U.S. derivatives regulator is moving to
address financial-industry concerns over its oversight
responsibilities for virtual currencies and related futures
products.
Two Commodity Futures Trading Commission advisory committees,
which include both regulators and industry participants, will meet
in late January to address issues related to policing activity on
virtual-currency exchanges, the clearing of bitcoin futures and the
unique risk of fraud and manipulation related to virtual
currencies.
"Ignoring virtual-currency trading will not make it go away. Nor
is it a responsible regulatory strategy," said Chairman J.
Christopher Giancarlo in a statement announcing the meetings.
In addition to the announcement, the CFTC also released a fact
sheet further elaborating on its approach to regulating virtual
currencies. It also pushed back on criticism leveled by powerful
institutional investors, including billionaire Thomas Peterffy and
the Futures Industry Association, who have opposed to the CFTC's
approach to bitcoin futures. They have raised concerns in recent
weeks about whether clearing bitcoin futures alongside other, more
traditional derivatives products might introduce unwanted risks
into the clearing process.
The FIA, in a letter to Mr. Giancarlo, questioned whether the
CFTC could have done more to solicit public input or delay the
launch of bitcoin futures by exchanges run by CME Group Inc. and
Cboe Global Markets Inc.
"Neither statute nor rule would have prevented CME and [Cboe
Futures Exchange] from launching their new products before public
hearings could have been called," according to the CFTC. "Even if
the CFTC could have held public hearings or requested public input,
it is unlikely that the outcome would have changed," the commission
added, saying its staff has determined the bitcoin futures
applications comply with commodities laws and regulations.
Write to Gabriel T. Rubin at gabriel.rubin@wsj.com
(END) Dow Jones Newswires
January 04, 2018 13:11 ET (18:11 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Jun 2024 to Jul 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Jul 2023 to Jul 2024