The US Commodity Futures Trading Committee (CFTC) has previously indicated a major directive that has previously indicated the audit of digital asset derivatives.
This decision indicates a more friendly regulatory climate for digital assets in the United States, given the position of the Trump administration supporting the situation.
CFTC LOOSES Supervision of Curd Derivatives
CFTC consulting with employees No. 23-07 and No. 18-14 by dividing the clearing and risks (DCR).
Previous, issued in May 2023, focused on the risk of cleansing digital assets. At the same time, and last Targeted virtual currency derivative lists.
Upon establishing, both directions have alluded to the encryption products squad for the tougher purchase.
However, both have now been considered unnecessary, and immediately effective, amid pushing the commodity organizer towards organizational consistency.
The decision indicates a shift to dealing with derivatives of digital assets such as those in ETHEREUM (ETH) as traditional financing products (Trafi).
“As mentioned in the withdrawal letter today, DCR is determined to withdraw the consultant to ensure that it does not indicate that its organizational treatment of digital asset derivatives will differ from its treatment of other products”, “CFTC Make up.
This step will remove the differences between derivatives of digital assets and Trafi tools.
It also paves the way for the sharing of the improved market, which will facilitate the broader participation of financial institutions in the Digital Asset Derivatives Market. This can lead to increased liquidity and the maturity of the market.
However, the derivatives that warned DCOS regulators warned to prepare for risk assessments of the unique characteristics of digital products.
Therefore, although it reflects CFTC’s commitment to promoting innovation, it also indicates the intention to maintain strong financial control.
At the same time, this decision comes just weeks after the Currency Observer Office (OCC) that allowed us to provide encryption services and nails without prior approval.
However, OCC has made it clear that although the approval requirements are raised, banks must maintain strong controls for risk management similar to those required for traditional banking operations.
“OCC expects that banks will have the same strong controls for risk management to support new bank activities as they do with traditional activities,” ” He said Rodney E. Hood, Acting Currency Observer.
Therefore, the CFTC move to eliminate the organizational bias of encryption derivatives represents a major gap in the US policy. On the one hand, CFTC seeks to cancel the discrimination between encryption derivatives and Tradfi tools.
On the other hand, FDIC (Federal Deposit Insurance Company) and OCC want to maintain risk management controls similar to those required for traditional banking operations despite the provision of encryption services and nights.
Nevertheless, these efforts reflect the increasing trend between the American financial organizations to reduce barriers and enhance the innovation responsible in the encryption industry.
Disintegration
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