Crypto trading on the spot market within the U.S. receives regulatory clarification
In a joint statement issued on Tuesday, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have officially clarified the rules for spot crypto trading in the United States.
The move aims to boost transparency and enable effective monitoring of spot crypto products. Exchanges are now required to provide clear reference pricing for these products, commit to public dissemination of trade data, and collaborate with custodians when listing spot crypto products.
Existing laws do not prevent regulated exchanges from listing spot crypto products, including those involving margin or leverage. Securities exchanges, designated contract markets, and foreign boards of trade are all eligible to list such products.
However, the agencies did not provide details on how they will monitor the implementation of these rules. Neither did they specify which investor protection and operational standards exchanges must meet. Furthermore, no penalties for non-compliance with these rules were mentioned.
The clarification allows registered exchanges in America to offer certain spot crypto products. Market participants are invited to engage with SEC staff or CFTC staff regarding spot crypto products.
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In light of these developments, it is expected that the spot crypto market in the U.S. will see increased activity and investment. The regulators' clarification is a significant step towards fostering a more transparent and secure environment for crypto trading.
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