J. Christopher Giancarlo noted an uptick in the amount of crypto companies seeking clearinghouse status during a recent testimony.
The US Commodity Futures Trading Commission is anticipating a wave of new applications from companies attempting to become federally-regulated clearinghouses after an “explosion of interest in Cryptocurrencies,” according to a testimony to the US House Agriculture Committee delivered by CFTC Chairman J. Christopher Giancarlo earlier this week.
Thank you for the opportunity to testify today. These are indeed crucial steps for @CFTC. https://t.co/ArUmsYRrtz
Giancarlo also said that as they continue to grow more complex, the clearinghouses his agency regulates are “critical single points of risk in the global financial system.”
Clearinghouses are financial institutions that are responsible for facilitating transactions between any two entities. They act as intermediaries that ensure trust on both ends of the transactions. The CFTC’s job is to examine these clearinghouses closely to identify possible problems that may impair the clearinghouse’s ability to do their job.
More Clearinghouse Applications Are Anticipated
Giancarlo not only said that “the importance of these examinations to overall financial stability are all increasing,” but that the CFTC is likely to soon have more clearinghouses under its jurisdiction.
“The Commission anticipates new applications for clearinghouse registration resulting from the explosion of interest in cryptocurrencies; an area in which protection of the cryptocurrencies will be one of the highest risks,” he said. The CFTC already regulates many clearinghouses within the US, as well as six located overseas.
Cryptocurrency platform ErisX is one of the crypto-related platforms currently seeking approval to become a CFTC-regulated clearinghouse; crypto derivatives firm LedgerX has already achieved clearinghouse status.
Giancarlo also mentioned LabCFTC, the Commissions’ fintech research group. He said that Blockchain and crypto were two important aspects of “rapidly changing markets and technological developments” that the research group has been able to help the CFTC anticipate and understand.
Additionally, the group’s work helped the CFTC “to determine the value of technological innovations,” including “crypto-asset-based futures products.”
As the bear market raged throughout 2018 and early 2019, many investors saw crypto futures products as an alternative to cryptocurrency investing and spot trading. CME and Cboe were the first two platforms to offer crypto futures in late 2017; since then, a growing number of platforms have joined them, including ErisX, LedgerX, Bakkt, and others.
The US Commodity Futures Trading Commission is anticipating a wave of new applications from companies attempting to become federally-regulated clearinghouses after an “explosion of interest in Cryptocurrencies,” according to a testimony to the US House Agriculture Committee delivered by CFTC Chairman J. Christopher Giancarlo earlier this week.
Thank you for the opportunity to testify today. These are indeed crucial steps for @CFTC. https://t.co/ArUmsYRrtz
Giancarlo also said that as they continue to grow more complex, the clearinghouses his agency regulates are “critical single points of risk in the global financial system.”
Clearinghouses are financial institutions that are responsible for facilitating transactions between any two entities. They act as intermediaries that ensure trust on both ends of the transactions. The CFTC’s job is to examine these clearinghouses closely to identify possible problems that may impair the clearinghouse’s ability to do their job.
More Clearinghouse Applications Are Anticipated
Giancarlo not only said that “the importance of these examinations to overall financial stability are all increasing,” but that the CFTC is likely to soon have more clearinghouses under its jurisdiction.
“The Commission anticipates new applications for clearinghouse registration resulting from the explosion of interest in cryptocurrencies; an area in which protection of the cryptocurrencies will be one of the highest risks,” he said. The CFTC already regulates many clearinghouses within the US, as well as six located overseas.
Cryptocurrency platform ErisX is one of the crypto-related platforms currently seeking approval to become a CFTC-regulated clearinghouse; crypto derivatives firm LedgerX has already achieved clearinghouse status.
Giancarlo also mentioned LabCFTC, the Commissions’ fintech research group. He said that Blockchain and crypto were two important aspects of “rapidly changing markets and technological developments” that the research group has been able to help the CFTC anticipate and understand.
Additionally, the group’s work helped the CFTC “to determine the value of technological innovations,” including “crypto-asset-based futures products.”
As the bear market raged throughout 2018 and early 2019, many investors saw crypto futures products as an alternative to cryptocurrency investing and spot trading. CME and Cboe were the first two platforms to offer crypto futures in late 2017; since then, a growing number of platforms have joined them, including ErisX, LedgerX, Bakkt, and others.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
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Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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