CFTC opens a federal route for crypto markets

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only. Washington has begun testing a federal answer to a problem that U.S. crypto companies have dealt with for years: how to operate across a national market while regulation still depends in large part on state licences. The timing gives the proposal significance. Binance showed the Bitcoin price at $81,310.26 at 11:33 UTC on October 28, with $21.89 billion traded during the previous 24 hours. Exchanges such as Binance match buy and sell orders through their trading systems, while the displayed market value changes as those orders meet. The CFTC’s October initiative concerns the rules surrounding part of that activity rather than the direction of the asset itself. On October 5, the agency opened a public consultation on a federal framework for retail crypto commodity transactions involving leverage or financing. The CFTC has started a rulemaking process The October 5 announcement begins with Section 2(c)(2)(D) of the Commodity Exchange Act. That provision covers certain retail commodity transactions offered with leverage or margin. Financing ...