On October 6, Better Markets said the CFTC shouldn’t regulate retail crypto.
That’s like asking traffic cops to oversee food safety.
Better Markets’ argument is that the CFTC’s core business is commodities and derivatives markets, whose participants have historically been mostly large institutions, and that it has no investor-protection mandate. The SEC’s rules include comprehensive investor protections, so handing retail crypto to the CFTC would leave retail investors with weaker protections. It also questioned the legal basis for expanding the CFTC’s authority, saying the relevant authority was originally intended to crack down on fraud in leveraged precious-metals trading—and doesn’t show that Congress wanted to put retail crypto under the CFTC.
Meanwhile, the CFTC has sought public comment on margin, leverage, and financed crypto trading, and is considering bringing eligible platforms under its regulatory oversight.
If Congress passes new market-structure legislation and explicitly assigns retail crypto to one agency, this debate will be moot.
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#ADA rises 10%, breaks above $0.27
That’s like asking traffic cops to oversee food safety.
Better Markets’ argument is that the CFTC’s core business is commodities and derivatives markets, whose participants have historically been mostly large institutions, and that it has no investor-protection mandate. The SEC’s rules include comprehensive investor protections, so handing retail crypto to the CFTC would leave retail investors with weaker protections. It also questioned the legal basis for expanding the CFTC’s authority, saying the relevant authority was originally intended to crack down on fraud in leveraged precious-metals trading—and doesn’t show that Congress wanted to put retail crypto under the CFTC.
Meanwhile, the CFTC has sought public comment on margin, leverage, and financed crypto trading, and is considering bringing eligible platforms under its regulatory oversight.
If Congress passes new market-structure legislation and explicitly assigns retail crypto to one agency, this debate will be moot.
Save the QR code to keep news and strategies at your fingertips!
#ADA rises 10%, breaks above $0.27
