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SEC and CFTC could write rules for crypto markets

by SuperiorInvest

However, the CFTC has jurisdiction through offers of margin, leveraged or financed commodity spot trading to retail investors. Outside the US, most crypto exchanges allow retail investors to trade crypto assets on margin. In the US, crypto exchanges must register with the CFTC as a futures exchange in order to offer crypto asset margin trading to retail investors. In addition, a CFTC-registered futures commission trader must provide margin and these trades must be cleared by a CFTC-registered clearinghouse. The CFTC issued interpretive guidance clarifying the circumstances under which an exchange may qualify for the narrow “actual delivery” exception to these requirements, but few, if any, have managed to find a way to do so.

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