CFTC Offers Guidance Around Listing Cryptocurrency Derivatives

- Advertisement -

The US Commodity Futures Trading Commission has unveiled a new set of guidelines relating to cryptocurrency derivatives.

On May 21, the US Commodity Futures Trading Commission (CFTC) issued new guidelines for financial institutions planning to offer cryptocurrency derivatives (i.e., financial products that go up or down in value depending on changes in cryptocurrency prices).

The regulator identified two key concerns with regard to the offering of cryptocurrency derivatives. First, “virtual currency platforms present heightened concerns about potential impacts on CFTC-regulated markets, including potential market manipulation, because they lack the transparency and robust regulation as U.S. derivatives platforms.”

Second, the agency cautioned that because cryptocurrency trading is a relatively new phenomenon and prices in the space are relatively volatile, exchanges and other crypto marketplaces may not be able to “adequately assess the inherent risk of virtual currency contracts in setting margin levels for these contracts.

Among the document’s recommendations: platforms offering cryptocurrency derivatives should “regularly discuss with Commission staff a wide range of issues related to the surveillance of virtual currency derivatives contracts, and provide surveillance information as requested by Commission staff.”

According to an introductory note, the guidance was published after CFTC staff worked with personnel from the Chicago Mercantile Exchange and the CBOE Futures Exchange to review those marketplaces’ bitcoin futures.

- Advertisement -

In past coverage, ETHNews has described a possible scheme to manipulate the benchmark price against which existing bitcoin futures are evaluated. 

Adam Reese is a Los Angeles-based writer interested in technology, domestic and international politics, social issues, infrastructure and the arts. Adam is a full-time staff writer for ETHNews and holds value in Ether, Bitcoin, and Monero.

Like what you read? Follow us on X @Bitnewsbot to receive the latest CFTC, derivatives or other Ethereum cryptocurrencies and tokens news.

- Advertisement -



Previous Articles:

- Advertisement -

Latest News

Singapore Fines UBS, Citi, Others $21.5M in Money Laundering Scandal

Singapore fined nine financial firms $21.5 million in connection with a major money laundering...

Valhil Capital Predicts XRP Could Hit $4,813 by 2030 Amid Adoption

Valhil Capital projects XRP could reach a fair market value of $4,813 to $9,000...

Hamak Gold to Hold Bitcoin in Treasury, Aims for UK Leadership

Hamak Gold is moving part of its treasury funds into Bitcoin while continuing gold...

Symbolic 200 BRICS Bank Note Unveiled at 2025 Summit Sparks Buzz

A 200-denominated BRICS bank note appeared at the 2025 St. Petersburg forum, generating discussions...

$8.6B Bitcoin Move Sparks New Speculation Over Satoshi’s Identity

Bitcoin saw a record $8.6 billion transferred from dormant wallets in what is called...

Must Read

Top 9 Most Legit Bitcoin Faucets

Bitcoin faucets are platforms where you can earn Bitcoin free. Some other faucet apps and websites allow users to receive different cryptocurrencies for free....