The CFTC is an independent federal regulatory agency tasked with overseeing the U.S. derivatives markets.
The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.
The Commodity Exchange Act (“CEA”), 7 U.S.C. § 1 et seq., prohibits fraudulent conduct in the trading of futures, swaps, and other derivatives. The stated mission of the CFTC is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. After the financial crisis of 2007–2008 and since 2010 with the Dodd–Frank Wall Street Reform and Consumer Protection Act, CFTC has been transitioning to bring more transparency and sound regulation to the multitrillion dollar swaps market.
CFTC Chair emphasized that the agency will focus on targeting fraud in crypto markets while moving away from the”regulation by enforcement” approach.
Eleanor Terrett revealed that the SEC and CFTC are in discussions to collaborate on crypto regulation as uncertainty prevails in the market.
Led by Commissioner Hester Pierce, the SEC’s new crypto task force aims to clarify the classification of crypto assets and not put everything within the “securities” bracket.