How Does the CFTC Classify a Crypto Asset to Bring It under Its Jurisdiction for Derivatives Trading? ⎊ Path

How Does the CFTC Classify a Crypto Asset to Bring It under Its Jurisdiction for Derivatives Trading?

The Commodity Futures Trading Commission (CFTC) asserts jurisdiction over a crypto asset if it is classified as a "commodity." The CFTC views assets like Bitcoin and Ethereum as commodities. This classification allows the CFTC to regulate futures, options, and swaps based on these crypto assets, as well as the exchanges that list them.

Their authority stems from the Commodity Exchange Act (CEA), which prohibits fraud and manipulation in commodity markets.

How Does the Jurisdiction of an Exchange Affect Its Counterparty Risk?

How Does the CFTC Regulate Leverage and Margin Requirements for Crypto Futures?

What Is the Role of the Securities and Exchange Commission (SEC) in Regulating Crypto Assets in the US?

What Are the Implications of a “Security” Vs. “Commodity” Classification for a Crypto Derivative Product?

What Is the Role of the CFTC and SEC in Regulating Crypto Derivatives and Market Manipulation?

How Does the Cost of Carry for a Commodity Differ from That of a Cryptocurrency, and How Does This Impact Option Style?

How Does MiCA (Markets in Crypto-Assets) Regulate Stablecoins in the EU?

What Role Does the Investment Company Act of 1940 Play in the Regulation of ETFs?

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Commodity Futures Trading Commission

Jurisdiction ⎊ The Commodity Futures Trading Commission (CFTC) exercises regulatory authority over derivatives markets, including those involving cryptocurrency futures and options, primarily under the Commodity Exchange Act.

CFTC

Jurisdiction ⎊ The Commodity Futures Trading Commission (CFTC) is a United States regulatory agency responsible for overseeing commodity futures and options markets.