FTX exchange proposes an idea to give more ease to the crypto exchanges to elect the regulator for their crypto services.
At present, the US and Australia are at the top in terms of regulation and adoption of crypto. In particular, the US securities and exchange commission (SEC) and CFTC are doing well to regulate the crypto industry in the United States. But both of these two agencies are responsible to regulate different categories of crypto business.
For example, the SEC agency is regulating cash securities marketplaces and CFTC is regulating commodity derivatives marketplaces. Now in both of these two situations, a problem will occur for a crypto exchange to go through both of the regulatory bodies if services belong to both of the Authority of regulation areas. On this issue, to bring ease to the crypto business, FTX exchange proposed an idea.
Earlier today, the FTX exchange published a document. Through the document, FTX.US suggested giving options to the crypto exchanges to choose their primary regulatory body.
Through the proposed idea, the document suggested that crypto services should have the option to choose SEC or CFTC as a primary regulatory body. If it will happen then in both situations, crypto businesses will get ease to follow regulatory guidelines and legal hurdles.
“As many know, the CFTC is the primary regulator of commodity derivatives marketplaces, while the SEC is the primary regulator of cash securities marketplaces,”. As some exchanges deal with both spot trading and derivatives trading, FTX suggests a framework that allows an exchange to “elect one market regulator as its primary regulator.”
Here, FTX exchange is giving derivatives and spot trading both services to the users. In this situation, exchanges need to work under the regulation of the SEC and CFTC both, so it will give a big advantage to the FTX exchange itself.
FTX moving toward the US
A few months ago, FTX exchange launched its NFTs marketplace for US users. And later FTX CEO said that they are excited that US regulators are approving the Bitcoin-backed products e.g Bitcoin Futures ETFs.
FTX exchange said that once FTX Exchange will get out from all kinds of legal hurdles then they will Focus on the expansion of the crypto business in the United States mainly.