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11 Dec 2014
CFTC Chairman: We have oversight of Bitcoin Derivatives – CoinDesk
FXStreet (Barcelona) - The CoinDesk Analysis Team cites CFTC chairman’s comments to the US derivatives regulator that digital currency derivatives fall within CFTC’s remit.
Key Quotes
“Timothy Massad, who chairs the Commodity Futures Trading Commission (CFTC), testified before the US Senate Committee on Agriculture, Nutrition and Forestry yesterday, noting that while his agency does not have specific rules governing digital currencies, it would oversee futures and swaps in any commodity. This includes digital currencies, he said.”
“Massad noted the CFTC defines commodities "very broadly" and the term is not limited to agricultural commodities like metals and energy, but also includes derivatives linked to stock market indices, currencies and electricity.”
“Massad framed digital currency derivatives as a form of innovation that his agency wants to encourage, although he noted his agency is also tasked with enforcing consumer protections and preventing manipulation and fraud.”
“The CFTC chair referred to TeraExchange's bitcoin swap as an example of a digital currency derivative that fell within his agency's oversight. New Jersey-based TeraExchange received approval for its swap from the CFTC in September.”
“Christian Martin, chief executive of TeraExchange, also welcomed Massad's comments. He said regulators and lawmakers were paying increasing attention to digital currencies and he viewed this as a positive development. He pointed to Massad's remarks at a Senate committee hearing as evidence that digital currency is being taken seriously.”
Key Quotes
“Timothy Massad, who chairs the Commodity Futures Trading Commission (CFTC), testified before the US Senate Committee on Agriculture, Nutrition and Forestry yesterday, noting that while his agency does not have specific rules governing digital currencies, it would oversee futures and swaps in any commodity. This includes digital currencies, he said.”
“Massad noted the CFTC defines commodities "very broadly" and the term is not limited to agricultural commodities like metals and energy, but also includes derivatives linked to stock market indices, currencies and electricity.”
“Massad framed digital currency derivatives as a form of innovation that his agency wants to encourage, although he noted his agency is also tasked with enforcing consumer protections and preventing manipulation and fraud.”
“The CFTC chair referred to TeraExchange's bitcoin swap as an example of a digital currency derivative that fell within his agency's oversight. New Jersey-based TeraExchange received approval for its swap from the CFTC in September.”
“Christian Martin, chief executive of TeraExchange, also welcomed Massad's comments. He said regulators and lawmakers were paying increasing attention to digital currencies and he viewed this as a positive development. He pointed to Massad's remarks at a Senate committee hearing as evidence that digital currency is being taken seriously.”