The SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk have issued a statement on the joint initiative regarding spot crypto trading.
The announcement is associated with the President’s Working Group on Digital Asset Markets and the policy goal of making the US the world’s top digital asset marketplace.
The two Divisions are pursuing guidance “regarding the listing of leveraged, margined, or financed spot retail commodity transactions on digital assets.”
The two agencies note that current law does not block SEC- or CFTC-registered exchanges from trading of crypto products.
The cross-agency initiative will pursue clarity on the following:
- Margin, Clearing, and Settlement: In the Divisions’ view, applicable rules permit clearinghouses to partner with a custodian to maintain customer accounts.
- The SEC’s Division of Trading and Markets stands ready to address questions from SEC-registered clearing agencies that wish to participate.
- The CFTC’s Division of Clearing and Risk stands ready to address questions from CFTC-registered derivatives clearing organizations (DCOs).
- The Divisions stand ready to address any regulatory questions associated with commercial relationships between DCOs and NSEs.
- Monitoring of Underlying Markets: In the Divisions’ view, sharing of reference pricing venues by NSEs, DCMs, and FBOTs enhances effective market surveillance. The Divisions stand ready to assist with any questions that arise related to effective information sharing.
- Public Dissemination of Trade Data: In the Divisions’ view, public dissemination of transactions by NSEs and DCMs provides the public with valuable data. The Divisions stand ready to consider any questions that arise about making spot crypto asset market data from NSEs and DCMs publicly available.
- Promoting Fair and Orderly Markets: In the Divisions’ view, efficient executions and transparency promote trading opportunities and competition among market participants. The Divisions are prepared to engage with trading venues about applying fair and orderly market principles as they seek to operate markets for participants to trade spot crypto asset products.
- Innovation with Investor and Customer Protections: The Divisions stand ready to work with market participants to encourage technological innovations in markets and trading while ensuring investor and customer protections.
The two agencies ask that interested parties reach out for further information.
