The Commodity Futures Trading Commission (CFTC) has initiated a new crypto sprint aimed at adopting recommendations from the President’s Working Group on Digital Asset Markets report. This follows a previous crypto sprint launched earlier in the month, emphasizing stakeholder engagement on the recommendations pertinent to the CFTC.
There is a growing recognition of the importance of federal oversight of digital asset trading, as highlighted by recent communications with stakeholders about the agency’s spot crypto trading initiative. Feedback received will address concerns surrounding leveraged, margined, or financed retail trading, particularly on CFTC-registered exchanges.
The CFTC’s efforts are being coordinated with those of the Securities and Exchange Commission (SEC), aligning with Project Crypto to enhance American leadership in digital finance. Engagement on additional recommendations from the Working Group report is also planned, with an invitation for public comments and suggestions relevant to the CFTC’s jurisdiction.
In related developments, discussions have emerged regarding the potential approval of crypto perpetual contracts. An outgoing CFTC Commissioner revealed that the agency is considering authorizing this kind of trading in the United States, with applications currently under review. These perpetual contracts function similarly to futures contracts but do not have expiration dates, a feature that has made them popular on offshore exchanges and regulated in some European jurisdictions.
Collectively, these initiatives reflect a concerted effort to strengthen the regulatory framework surrounding the digital asset market, ensuring it prioritizes fair trading practices while responding to shifting demands and innovations in the financial landscape.