Summary of the CFTC's Testimony to the Senate Banking Committee
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Discussion
For those that have not been yet made aware, testimony from Christopher Giancarlo , the Chairman of the Commodity Futures Trading Commission (CFTC), testified before the Senate Banking Committee on February 6, 2018. In the written testimony, Chairman Giancarlo made reference to the CFTC's ruling in release pr7231-15 on September 17, 2015.
The release included the clarification that virtual currencies met the definition of a commodity, the CFTC did not have regulatory jurisdiction under the Commodity Exchange Act (CEA). The agency did, however, find that they have the ability to investigate and conduct civil enforcement action against fraud and manipulation in virtual currency derivatives markets and in underlying virtual currency spot markets. In addition, the CFTC has both regulatory and enforcement jurisdiction under the CEA over derivatives on virtual currencies traded in the United States.
In 2016, the CFTC took action against a Bitcoin futures exchange operating in the U.S. that failed to register with the agency. Other enforcement actions include:
- My Big Coin Pay Inc.;
- The Entrepreneurs Headquarters Limited; and
- Coin Drop Markets.
The CFTC has made a commitment to work closely with the SEC and other enforcement agencies to aggressively prosecute bad actors. Regulatory actions of the CFTC, however, are limited to derivative markets and an expansion of the CEA would be necessary for the CFTC to regulate markets or platforms conducting cash or "spot" transactions (such as Binance, Poloniex, etc.).
Chairman Giancarlo went on to describe the CFTC's education efforts as well as interagency coordination efforts with the SEC, state banking, the IRS, and the finCEN. Finally, the Chairman concluded by speaking broadly to the potential benefits and uses of Blockchain technology as well as policy considerations.
References
http://www.cftc.gov/PressRoom/PressReleases/pr7231-15
@OriginalWorks
Sick summary!!!
Thanks!
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