CFTC Commissioner Plans to Define Retail Investors

• She stated her intention to offer a new retail investor definition.
• Christy would begin by posting a more casual idea on the website and soliciting feedback.

Given that the CFTC is expected to assume responsibility for spot crypto trading. Commissioner Christy Goldsmith Romero has said that the agency has to rethink its approach to rulemaking for retail investors.

She stated her intention to offer a new retail investor definition. Goldsmith Romero has said she would begin by posting a more casual idea on the agency’s website and soliciting feedback from the public. Previously dominated by institutions, she now sees “more retail investors” entering such markets.

Expanded Access to Retail Investors

Small-scale investors may be afforded more constraints and safeguards under the regulations. Moreover, if the agency treats them in a manner distinct from that accorded to big institutions. Thanks to the creation of a newly defined category.

Goldsmith Romero stated:

“You want to make sure that you can provide expanded access to retail investors but in a way that’s safe and affordable for them, which might look very different than how the institutions or how a high net worth individual might purchase.”

Several measures now making their way through Congress would provide the CFTC jurisdiction over the spot market or the marketplaces in which investors trade tokens directly with one another. Furthermore, this would make the CFTC the principal regulator for crypto trading.

Goldsmith Romero, who is the lead commissioner for the agency’s technology advisory group, noted that a new retail definition may be applied if the agency is evaluating restrictions — for instance – on the use of leverage by investors. She said that separating “household” investors from professionals by creating a separate retail-investor category may provide them with “more consumer protections, maybe more disclosures, written in a way that regular people understand.”

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