CFTC Issues Guidance on Digital Currencies for Futures Commission Merchants

The CFTC has issued new guidance for crypto derivatives markets that hold customer funds, much of which boils down to "be very, very careful." Per guidance released Wednesday evening, the Commodity Futures Trading Commission (CFTC) is advising businesses trading in crypto derivatives to hold customer funds very carefully.The new guidance continues the CFTC's interest in carving out rules for custodianship of virtual currencies — an area obviously distinct from any other asset class. Per the commission: "Custodians of virtual currencies are typically not subject to a system of comprehensive....

Timothy Massad, chairman of the US Commodity Futures Trading Commission, a lesser-known agency whose responsibilities often overlap with the Securities and Exchange Commission, yesterday gave a very long testimonial update to the Senate Committee on Agriculture, Nutrition & Forestry which covered everything from "interaffiliate transactions" to virtual currency to local utility companies and their rights in energy swap markets. In regard to cryptocurrencies, the Chairman noted that since such currencies are traded as commodities and in the same fashion as other futures, the 1936 Commodity....

Timothy Massad, Chairman of the Commodity Futures Trading Commission, testified before the U. S. Senate Committee on Agriculture, Nutrition & Forestry yesterday, and much to everyones surprise addressed the topic of bitcoin derivative regulation - something that has (to date) been largely ignored by policymakers and cryptocurrency enthusiasts alike. Here are a few choice selections from the testimony (if you want to read the full testimony, you can do so here): We also continue to respond to market developments such as new products. Virtual currencies, such as bitcoin, are an example.....

Jared Marx is an attorney at the Washington, DC law firm of Harris, Wiltshire & Grannis. He advises companies about bitcoin-related regulatory law, and represents companies and individuals in civil and criminal proceedings. Mark Wetjen, a commissioner at the US Commodities Futures Trading Commission (CFTC), has made it known loud and clear recently that bitcoin fits the legal definition of a commodity and that the CFTC has authority to regulate the digital currency. So what would the CFTC's regulation of bitcoin actually look like? For the average bitcoin user and business, probably not....

The US Commodity Futures Trading Commission (CFTC) has announced that it is investigating whether it has the authority to regulate bitcoin and other digital currencies, Reuters reports. "We are looking into that," Mark Wetjen, the CFTC's acting chairman, said at an industry conference. "It's been initiated, there's been an internal discussion at the staff level." The CFTC, which regulates the swaps and futures market, is studying whether bitcoin falls under the same rules as commodities markets, according to Wetjen. He said: "I think people [within the CFTC] believe there's a pretty good....