CFTC Issues Digital Currency Guidance to Futures Commission Traders

CFTC Issues Digital Currency Guidance to Futures Commission Traders


The Commodity Futures Trading Commission (CFTC) has issued a warning to futures commission (FCM) traders, providing clarity on how to take care of users' digital currencies in segregated accounts.

  • According to a press release on Wednesday from the CFTC's Swap And Intermediate Supervision Trading Division, the consultancy informs FCMs on how to maintain and report certain digital assets held by clients in connection with physically delivered futures contracts or swaps.
  • A segregated account means that the client's funds are strictly separate from the company's money.
  • The CFTC noted that keeping client assets as segregated funds can allow greater risks to arise for other clients under the same banner.
  • Financial watchdog consulting also provides guidance on the best practices FCMs should follow when designing and maintaining risk management programs when dealing with digital assets such as client funds.
  • The consultancy does not refer to the custody of digital assets of foreign FCMs of client assets in relation to futures or futures options trading.
  • CFTC Division Director Joshua B. Sterling said in a statement that the commission is "committed to promoting responsible fintech innovation" as it works to create a "holistic framework for digital asset derivatives."



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