The U.S. Commodity Futures Trading Commission (CFTC) is expecting to see more companies become regulated clearinghouses in the future. The reason behind this is because there is a growing interest in virtual currencies and digital assets.
CFTC Chairman Says There’s Growing Interest In Crypto
The Chairman of the CFTC Christopher Giancarlo testified on the current state of the regulatory agency before the U.S. House of Agriculture Committee. He mentioned that the clearinghouse that the CFTC is currently regulating are single points of risk in the global financial system.
The CFTC currently regulates clearinghouses in the United States and other jurisdictions. These institutions can facilitate transactions between two different parties working as intermediaries to ensure trust for both individuals. The agency oversees all these entities and tries to control which could have issues that could affect their risks.
Giancarlo commented about this:
“The Commission anticipates new applications for clearinghouse registration resulting from the explosion of interest in cryptocurrencies; an area in which protection of the cryptocurrencies will be one of the highest risks.”
Moreover, Giancarlo has been talking with LabCFTC research group that works in order to keep up with the latest technologies in the market, including digital assets and virtual currencies. Back in 2017, the Chicago Mercantile Exchange (CME) and the CBOE (Chicago Board Options Exchange) launched cash-settled Bitcoin futures to the market, becoming the first institutions to offer these services to institutions and larger investors. A few days later, Bitcoin reached its all-time high close to $20,000.