Summary
- The chair of the U.S. CFTC said digital assets (cryptocurrencies) will also be subject to existing derivatives margin models and risk-management standards.
- He said existing derivatives-market margin models and control frameworks will be used for crypto derivatives leverage management.
- He stressed that there would be no race to lower regulatory standards related to leverage, and that the same risk-management principles would apply.
Forecast Trend Report by Period
Mike Selig, chairman of the U.S. Commodity Futures Trading Commission, said digital assets will be subject to the same margin models and risk-management standards used in traditional derivatives markets.
On leverage in crypto derivatives, Selig said the CFTC will use the margin models and control frameworks already established in conventional derivatives markets, Cointelegraph reported on October 7.
He stressed that there would be no race to lower regulatory standards related to leverage.
The remarks indicate the CFTC intends to apply the same risk-management principles to crypto derivatives as it does to existing markets.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.