- Donald Trump vowed to protect the crypto industry from offshore decline, amid legislative efforts like the Clarity Act, while tech companies rely on critical technology.
- The Clarity Act has stalled in the Senate, while executive branch actions are influencing market sentiment for Bitcoin.
CFTC Proposes New Regulatory Framework for Crypto Exchanges
What happened
The Commodity Futures Trading Commission (CFTC) published an advance notice of proposed rulemaking outlining two linked frameworks, Regulation CTX and Regulation CAM, concerning crypto exchange rules. Regulation CTX would bring fully paid trades under CFTC oversight if the purchased crypto remains on the exchange's internal books and leverage is offered. Regulation CAM would create a "crypto asset market" license for exchanges that keep customer assets on their books and offer leverage.
From insidebitcoins.com
Why it matters
The proposed rules establish a clear line for federal oversight in the US market. Exchanges that maintain customer assets on their books and offer leverage would fall under a federal regime modeled after futures exchanges. The agency is also weighing requirements for proof-of-reserves and standards for listing tokens prone to manipulation.
The Clarity Act has stalled in the Senate, while executive branch actions are influencing market sentiment for Bitcoin.
From insidebitcoins.com
Who's involved
- KrakenCryptocurrency exchange subject to the proposed regulatory rules.
- White HouseThe recipient of the regulatory framework submitted by the CFTC.
- PaywardParent company and corporate owner of Kraken.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PaywardSpeculative
Payward could face increased regulatory compliance costs and risk exposure for its subsidiary, Kraken.
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The entities involved
-
Kraken
cryptocurrency exchange
- White House