FTX CEO Supports Wide-Ranging Derivatives Trading Knowledge Test

Sam Bankman-Fried of FTX concurred with CFTC Commissioner Christy Goldsmith Romero on the merits of trading disclosures and knowledge exams, but added on Twitter that they didn’t have to be crypto-specific.

In response to a Commodity Futures Trading Commission official’s call for the creation of a household retail investor category in order to increase consumer protections, Bankman-Fried made his remarks.

“Establishing a household retail investor category could give them more consumer protections. For example, disclosures written in a way that regular people understand or could be used when weighing rules on the use of leverage,” Romero tweeted.

“100% agree on disclosures, knowledge tests, etc.,” Bankman-Fried tweeted in response, adding that such tests need not be relegated solely to digital currencies.

According to the billionaire, disclosure requirements and knowledge-based checks for a variety of intermediaries, such as futures commissions merchants, may be appropriate.

Bankman-Fried line up with FTX’s plan to introduce U.S. cryptocurrency futures

The disclosure and testing claims made by Bankman-Fried line up with FTX’s plan to introduce U.S. cryptocurrency futures. In fact, the creator of FTX tweeted that the company has already laid out a proposed knowledge exam for its U.S. derivatives product.

The CFTC recently signaled that it will not be slack with cryptocurrency as the discussion over consumer protections for cryptocurrency and how Congress should codify regulations continues. Rostin Behnam, chair of the CFTC, stated a desire for more direct control over markets.

The stance taken by Behnam is consistent with remarks made by Gary Gensler, the head of the Securities and Exchange Commission, who suggested the CTFC might have more control over specific digital currencies during a speech at Georgetown University’s Financial Markets Quality Conference in Washington.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com


CoinCu News

970x90.gif (970×90)