CFTC Chairman Says Binance, Other Crypto Exchanges Can Opt Into Federal Oversight
Summary
- The US CFTC said it will create a regulatory option that would allow Binance and other cryptocurrency exchanges to choose federal-level regulation and supervision.
- The CFTC said it is working to introduce market-based regulation that includes safeguards against market manipulation and fraud, segregation of customer assets, and the separation of broker, exchange and clearing functions.
- The CFTC said it does not have the authority to mandate registration for every exchange, but 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 cryptocurrency exchanges such as Binance to opt into federal regulation and supervision.
CNBC reported on October 30 that CFTC Chairman Michael Selig, speaking in an interview about the Binance hack, said he would create a regulatory option that allows crypto exchanges to come under federal oversight.
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 a market-based regulatory regime that includes safeguards against market manipulation and fraud, segregation of customer assets, and the separation of broker, exchange and clearing functions.
While the agency does not have the authority to require every exchange to register with the CFTC, it will allow exchanges to opt into a federal registration and regulatory framework, he added.
