Cryptocurrency Included In CFTC’s 2019 Examination Priorities

News | February 14, 2019 By:

The US Commodity Futures Trading Commission (CFTC) has announced that its 2019 Examination Priorities for registrants of the Division of Market Oversight (DMO) will include cryptocurrency.

In an official announcement, the CFTC said that this marks the first time that the agency has published Examination Priorities for DMO, Division of Swap Dealer & Intermediary Oversight (DSIO), and Division of Clearing & Risk (DCR). DMO’s compliance branch currently conducts examinations of designated contract markets (DCM) to monitor their compliance with the Commodity Exchange Act and CFTC regulations through Rule Enforcement Reviews (RER).

This year, the compliance branch’s RERs will focus on specific elements of DCMs’ traditional self-regulatory programs, as well as emerging areas of self-regulation, where regulatory requirements and best practices may still be developing. The compliance branch examination priorities include cryptocurrency surveillance practices, real-time market monitoring practices, trade surveillance practices, block trade surveillance practices and others.

“I commend DMO, DSIO and DCR leadership and staff for their work to bring additional transparency into the CFTC agenda in order to ensure that registered market participants devote adequate compliance resources consistent with our regulatory priorities,” said CFTC Chairman J. Christopher Giancarlo. “This first-ever publication of division examination priorities is in line with Project KISS and other agency initiatives to improve the relationship between the agency and the entities it regulates, while promoting a culture of compliance at our registrants.”

In December 2018, the CFTC published a Request for Information (RFI), asking public feedback on a range of questions related to the underlying technology, opportunities, risks, mechanics, use cases, and markets, related to ether and the ethereum network. At the time, the agency said that the comments will allow them to better understand similarities and distinctions between ether and bitcoin, as well as ether-specific opportunities, challenges, and risks.