CFTC Expects New Companies to Apply and Become Regulated After Growing Interest

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.”

One of the firms that operate as a clearinghouse is LedgerX. Meanwhile, Bakkt and ErisX are currently waiting for CFTC approval to become derivatives clearing organizations (DCOs).

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.

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Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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