US CFTC warns crypto clearing service providers
The American Commodities regulatory body warned all the companies which are providing “Clearing of Digital Assets”.
The US Commodity Futures Trading Commission (CFTC) is the second dominant financial sector regulatory body. This body also regulates the crypto derivatives service providers. The govt agency mainly targets those crypto firms which are focused on Ethereum, & Bitcoin services.
On 30 May 2023, The CFTC body published an advisory for all the registered firms providing clearing services for products such as futures contracts, options, or swaps.
The advisory mainly targeted those registered firms which are linked with crypto-related services. As per the advisory, the CFTC body will investigate whether these service providers are providing cleaning services with caring risks, including cyber, that can be associated with digital assets.
CFTC stated:
“(the Commodities regulatory body) will emphasize reviews of physical settlement arrangements, including whether DCOs have adequately identified and managed risks and obligations associated with digital assets and whether DCO rules state the obligations of the DCO, if any, concerning physical deliveries involving digital assets.”
US SEC vs Crypto
In the present time, there is no clear crypto regulation system in America but still, the United States Securities and Exchange Commission (SEC) regulates this new sector with existing traditional financial laws & policies.
Over the last 6 months the SEC body initiated several enforcement actions against top regulatory firms, while failing to provide clarity over the actions & charges.
It seems that the CFTC body is planning to follow the SEC’s path.
Some crypto experts suggested the crypto community remains ready to see more enforcement action against crypto companies.
Coinbase vs SEC
In the present time Coinbase crypto exchange is the top regulated crypto firm in the US and in March of this year this exchange received a Wells notice from the SEC body over violation of potential securities laws.
Coinbase’s legal team forced the SEC body to provide clarity over its crypto market regulatory approach. So far, the SEC body failed to provide any proper clarity against all the enforcement actions but clearly stated that no entity is allowed to guide any govt agency on how to follow duty & rules.
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