Rostin Behnam, the Chairman of the Commodity Futures Trading Fee (CFTC), was at listening to the tagged “The State of the CFTC” with the Home Agriculture Committee on Thursday, March 31, and one of many core topics of debate was a proposal from FTX Derivatives Exchange.
Per the proposal, the trading platform requested to drift a brand new technique of clearing derivatives without the involvement of the accredited futures fee retailers. Drawing on this, the Chairman of the committee, David Scott (D-GA), identified that he’s “very concerned” about “a proposal pending at the CFTC by a cryptocurrency exchange that is seeking approval to operate a new and untested system of clearing derivatives trades.”
In response, Behman famous that the fee is cautiously contemplating the proposal so that it will probably foster innovation within the derivatives market.
“I would just assure you and this committee that as we are considering and contemplating the FTX proposal, we are doing it cautiously, we are doing it deliberately and patiently,” Behnam mentioned in an in-depth response. “Despite the novelty, as chairman, I feel I have the responsibility to allow every stakeholder and every market participant to share their views and to present their ideas that they have to the market.”
Behnam additionally acknowledged that:
“In many respects, this proposal could be a turning point or an inflection point for market structure. I don’t know that. I don’t believe that right now, necessarily, but I do think I have to consider the proposal in case there is a possibility for a new market structure that could provide innovation, provide more efficient markets, better pricing, better hedging tools.”
As a manner of doing its due diligence on the proposal, and in keeping with its followers, the CFTC despatched out a request for remark from the general public concerning the proposal, and it has prolonged the remark interval to 90 days from the preliminary 30 days. With the committee fixing one other listening to debate extra on the topic later in Might, the proposal has additionally re-established the place of FTX exchange whose CEO, Sam Bankman-Fried as soon as joined a bunch of crypto executives to attend a listening to with the Congress late final 12 months.
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