CFTC Chair Says Binance, Other Crypto Exchanges Will Be Able to Opt Into Federal Regulation
Summary
- The CFTC said it will create a formal option that would allow crypto exchanges including Binance to come under federal regulation and oversight.
- The CFTC said it is working to introduce market-based rules covering market manipulation and fraud prevention, segregated custody of customer assets, and separation among broker, exchange and clearing functions.
- Selig added that while the agency does not have the authority to make CFTC registration mandatory for every exchange, it will allow exchanges to choose a federal registration and regulatory framework.
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The US Commodity Futures Trading Commission plans to create a framework that would allow crypto exchanges, including Binance, to opt into federal regulation and oversight.
Michael Selig, chair of the CFTC, made the remarks in an interview about the Binance hack, CNBC reported on October 30.
Selig said that when FTX collapsed, some exchanges were licensed at the state level but were not subject to federal market regulation.
The CFTC is working to introduce market-based rules covering protections against market manipulation and fraud, segregation of customer assets, and the separation of broker, exchange and clearing functions.
He added that while the agency does not have the authority to require every exchange to register with the CFTC, it will allow exchanges to choose a federal registration and regulatory regime.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.