New CFTC proposal requires exchanges to segregate customer and company cash to protect crypto derivatives traders
US Commodity Futures Trading Commission (CFTC) is developing a proposal to ensure that more derivative exchanges separate customer funds from company cash. The draft will expand the scope of CFTC's existing regulation to apply to exchanges that allow customers to trade without going through a broker. CFTC Democratic member Kristin Johnson said that the proposal would help prevent FTX from competing for customer funds from its subsidiary LedgerX, which is regulated by CFTC. Kristin Johnson said that the rules requiring customer asset segregation should apply to any company using or seeking a similar direct-to-customer model, regardless of whether they offer crypto products or other types of derivatives. Given events such as the collapse of FTX, CFTC should take immediate action to develop rules to prevent customer funds from being misused or lost.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Russia to move crypto miners to the barren north, let them mint at old oil fields
Share link:In this post: Bitcoin miners may be asked to relocate to Russia’s north. Proposal comes amid expanding ban on cryptocurrency mining. Miners offered to utilize idle power infrastructure at abandoned oil fields.
SpaceX could cash in on Trump’s $175B “Golden Dome” missile defense system plan
Share link:In this post: SpaceX, Lockheed Martin, Boeing and others are racing to build Trump’s $175 billion Golden Dome missile shield. On May 1, 42 Democratic lawmakers asked the Defense Department inspector general to review the contract over Elon Musk’s ties and conflict concerns. The Trump team says the shield can be done in three years for $175 billion, but the CBO pegs it at 20 years and $524 billion.
Metaplanet is going parabolic; Is the market bullish on Bitcoin Treasuries?
Share link:In this post: Metaplanet increased its Bitcoin reserve holding to 78% of the original target of 10000 BTC by the end of 2025. Metaplanet stock has gained over 57% throughout the past week and a 163% gain on the monthly chart. Metaplanet has become the most shorted stock by Japanese hedge funds, while analysts compare it to GME of 2021.
Trending news
MoreCrypto prices
More
