- When the Dodd-Frank Act was passed to prevent a repeat of the 2008 financial crisis, the CFTC hosted more than two dozen roundtables to draft a slew of new rules. This time, the agency is debating the crucial crypto issue with a new set of commissioners, four of whom were sworn in during March and April following recent Senate nominations.
- The open discussion will allow supporters and opponents to voice their opinions without the formality of a hearing. Steven Adamske, a spokesperson for the Commodity Futures Trading Commission, declined to comment on the idea, and an FTX official could not be reached for comment.
- FTX’s approach would minimize the over-reliance on the current gatekeepers to trading markets, according to a letter from the owners of BlockTower Capital. However, the comment period is still open for three weeks, and the idea is expected to be met with opposition from more established exchanges.
According to a source acquainted with the Commodity Futures Trading Commission’s (CFTC) plan, the FTX petition to directly clear the trades of its derivatives customers will receive an informal hearing on May 23. The corporation and others with a stake in the decision will be invited to a public roundtable when the 60-day public comment period ends on May 11, according to the source, who spoke on the condition of anonymity because the event has yet to be advertised.
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Derivatives Backed By Margin
The open discussion will allow supporters and opponents to voice their opinions without the formality of a hearing. Steven Adamske, a spokesperson for the Commodity Futures Trading Commission, declined to comment on the idea, and an FTX official could not be reached for comment. Chairman Rostin Behnam said his agency is proceeding cautiously with FTX.US’s application to allow its trading platform to immediately clear derivatives backed by margin.
He speculated that the proposal could be the first of many, and that if allowed, it would have far-reaching consequences. The industry, on the other hand, has been upbeat about Benham’s recent congressional testimony. This concept could lead to more effective trading execution and reduced risk in the system, Behnam told lawmakers last month at the House Agriculture Committee, adding that he is expected to support responsible innovation, and FTX s notion doesn’t appear to contravene commodities rules.
Two Dozen Roundtables To Draught A Slew Of New Rules
When the Dodd-Frank Act was passed to prevent a repeat of the 2008 financial crisis, the CFTC hosted more than two dozen roundtables to draft a slew of new rules. This time, the agency is debating the crucial crypto issue with a new set of commissioners, four of whom were sworn in during March and April following recent Senate nominations.
FTX’s approach would minimize the over-reliance on the current gatekeepers to trading markets, according to a letter from the owners of BlockTower Capital. However, the comment period is still open for three weeks, and the idea is expected to be met with opposition from more established exchanges.
Source: https://www.thecoinrepublic.com/2022/04/24/the-ftx-concept-is-likely-to-just-be-discussed-at-a-cftc-roundtable-following-month/