Chairmen from the SEC and CFTC talk crypto guideline at ISDA conference
The annual conference of the International Swaps and Derivatives Association (ISDA) began Wednesday in Madrid. United States Securities and Exchange Commission (SEC) chairman Gary Gensler and U.S. Commodity Futures Trading Commission (CFTC) chairman Rostin Behnam were both featured as keynote speakers at the occasion, with Behnam speaking at the early morning session, and Gensler in the afternoon.
Behnam spoke at length about “an ask for an amended order of registration as a derivatives clearing company (DCO) by an entity seeking to offer non-intermediated cleaning of margined products to retail individuals,” which was transparently a referral to FTX US’s demand.
“As other signed up entities have actually expressed interest in checking out comparable models, and given the potential impact on clearing members and FCMs [futures commission merchants] […] it is critical to be transparent and provide a chance to hear from the general public,” Behnam said, plugging the CFTC roundtable on the subject turning up later on this month.
FTX CEO Sam Bankman-Fried might have been listening as Behnam spoke, as Bankman-Fried was present at the conference and participated in a fireside chat a couple of hours later on.
Behnam went on to recall his February Senate statement and say that:
“I will continue advocating for and supporting legal authority for the CFTC to establish a regulatory framework for the money digital asset commodity market.”
Presently, the CFTC only regulates derivatives markets, although it has actually applied enforcement authority over money markets, such as the fine it enforced on Coinbase for inappropriate reporting of exchange volume and “self-trading” in 2021.
Related story: Bipartisan costs to offer CFTC authority over exchanges and stablecoins
Gensler discussed “the crossway of crypto assets with derivatives” in his substantially shorter speech. He stated:
“If platforms– whether in the decentralized or centralized financing space– use security-based swaps, they are linked by the securities laws and should work within our securities program.”
Gensler worried the need for the ISDA “to recognize that if the underlying property is a security, the derivative must abide by securities guidelines” as it establishes legal requirements for crypto derivatives.Published at Wed, 11 May
2022 21:15:00 +0000