FIA has responded to the US Commodity Futures Trading Commission’s spot crypto listing initiative, which invites stakeholders to work with the Commission “on providing regulatory clarity on how to list spot crypto asset contracts on CFTC-regulated designated contract markets” using the Commission’s “existing authority” under the Commodity Exchange Act.
While FIA supports efforts by regulators, including the CFTC, to provide clarity for market participants on digital assets regulation, it views the CFTC’s regulatory authority on spot crypto as limited under the Commodity Exchange Act. For this reason, it believes prioritizing the CLARITY Act, which would establish a regulatory framework for digital assets, as the best path forward.
“FIA understands the goal of the initiative is for the Commission to fashion a framework for DCMs to offer regulated markets for spot crypto asset contracts under the current text of the CEA. While we agree that regulating spot crypto asset markets is overdue and that the Commission is well-positioned to do so, it is important to recognize the limitations on the Commission’s authority under the CEA to regulate spot trading of any commodities, whether on or off exchange,” the response says.
“The CEA, in its current form, does not authorize the Commission to regulate trading of spot crypto asset contracts or other spot contracts for commodities beyond its authority over leveraged, margined, or financed transactions with retail persons, covered by section 2(c)(2)(D). This limitation on the Commission’s authority is why FIA supports Congress’ efforts to adopt legislation that would establish a clear framework in the CEA for the Commission to comprehensively regulate and oversee spot trading of digital commodities."
FIA provides the comments with the hope of supporting digital assets markets in reaching their full potential in the United States. Read the response in full.
