New CFTC proposal requires exchanges to segregate customer and company cash to protect crypto derivatives traders
US Commodity Futures Trading Commission (CFTC) is developing a proposal to ensure that more derivative exchanges separate customer funds from company cash. The draft will expand the scope of CFTC's existing regulation to apply to exchanges that allow customers to trade without going through a broker. CFTC Democratic member Kristin Johnson said that the proposal would help prevent FTX from competing for customer funds from its subsidiary LedgerX, which is regulated by CFTC. Kristin Johnson said that the rules requiring customer asset segregation should apply to any company using or seeking a similar direct-to-customer model, regardless of whether they offer crypto products or other types of derivatives. Given events such as the collapse of FTX, CFTC should take immediate action to develop rules to prevent customer funds from being misused or lost.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Dogecoin futures open interest hits all-time high — Is it a top signal for DOGE?
WisdomTree files for XRP ETF in Delaware
US Attorney behind Sam Bankman-Fried case will resign on Dec. 13
How High Will Cardano (ADA) Price Rise if It Mirrors its 2021 Bull Run? This Cheaper $0.09 will rise higher in 2025