- CFTC-linked self-regulatory organization has issued new rules for members engaging in crypto activities.
- New standards of conduct are well modeled on the agency's antifraud rules for ETFs, swap transactions, and retail foreign exchange.
- It applies to Bitcoin and Ethereum and will take effect beginning May 31.
Commodities Futures Trading Commission (CFTC), through the National Futures Association (NFA), has issued new rules for members handling digital assets.
@CFTCpham applauds the National Futures Association (CFTC-designated SRO for derivatives industry) for establishing supervision and disclosure requirements for the trading of digital commodities.
— Alexander Grieve (@AlexanderGrieve) March 31, 2023
✅ Importantly, the NFA (and Pham) reinforce ETH’s https://t.co/uu0Vc3WD7F…
The NFA is the only registered Self Regulatory Organization (SRO) for derivatives markets with delegated authority from the CFTC. It has "well over 100" members engaging in activities with digital asset commodities.
CFTC and NFA issue new rules for members engaging in activities with BTC and ETH
In a February 28 letter to the CFTC secretary Christopher Kirkpatrick, the derivatives market SRO said that it did not have any way to address fraud or misconduct committed by its members. The letter was attached to a proposal for new rules and sought approval.
In the latest development, the proposal has been approved and will govern the members once it is implemented.
The new rules are modeled on the NFA's antifraud rules for exchange-traded futures (ETFs), swaps transactions, and retail foreign exchange. It complements requirements issued in 2018.
In its mandate, the NFA has equal status to the Financial Industry Regulatory Authority (FINRA) of the Securities and Exchange Commission (SEC). Currently, the NFA only imposes disclosure requirements on members who engage in spot digital asset commodity activities with digital assets. This has been detailed in a single document. Now, standards of conduct are being added.
New NFA rules herald CFTC authority
Reportedly, the new rules will take effect beginning May 31, when members will be subject to guidance on fraud, trade principles, and staff supervision. Notably, the rules apply only to Bitcoin (BTC) and Ethereum (ETH) because these are the only digital assets that "have related commodity interests certified by a registered entity for listing under Part 40 of CFTC Regulations."
Commenting on the development, CFTC commissioner Caroline Pham released a statement praising the new rules. She said,
This is a clear example of using existing authority to ensure that there are customer protections in place because registration with the NFA requires that firms and individuals comply with NFA rules.
Pham also noted that the NFA had the authority to adjust the rules in the future so that it captures other digital asset commodities and not be limited to BTC and ETH.
Furthermore, the CFTC official also articulated that the NFA rules on foreign exchange herald or precede the CFTC's mandate as granted by Congress for regulating that [foreign exchange] market by five years. She says, "I believe it is common sense to start with what we have and what works to extend our regulatory framework over spot digital asset commodity markets."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Kyber exploiter asks for complete control of all assets after nearly $50 million exploit

Kyber network exploiter drained the protocol’s liquidity pools of nearly $50 million on November 22. The team behind Kyber managed to recover $4.67 million and communicated with the exploiter for the remainder of assets.
Chainlink supply on exchanges hits lowest point since 2020, with LINK staking v0.2 launch

Chainlink supply on exchanges declined to a level previously seen in February 2020. LINK staking v0.2 went live on November 28, attracting 68% of staked tokens from v0.1.
Bitcoin Spot ETF applications see amendments, holders await January batch approval

Bitcoin Spot ETF race has late entrants and updates from BlackRock, according to James Seyffart. BTC Spot ETF approval anticipation has fueled a rally in both spot and futures markets.
Ethereum Price Prediction: ETH top-down analysis hints upside is capped at $2,500

Ethereum price trades in a clear consolidative trend on the weekly time frame between $1,933 and $2,141 barriers. The daily chart for ETH shows a sweep of Monday’s high is likely to be followed by a sweep of Monday’s low at $1,985.
Three key BTC accumulation levels before ETF approval in January 2024

Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.