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Better Markets criticizes CFTC plan for retail crypto oversight
Better Markets says the CFTC’s framework for margined, leveraged or financed retail crypto transactions could weaken investor safeguards compared with SEC oversight.
Better Markets criticized a proposed regulatory framework from the US Commodity Futures Trading Commission for certain retail crypto transactions, arguing the CFTC is the wrong agency to oversee the market.
In a statement tied to the CFTC’s Monday request for public comment, the nonprofit said that bringing margined, leveraged or financed retail crypto transactions and exchanges under CFTC authority would leave investors less protected than if the SEC handled the rules.
Better Markets argued the derivatives regulator is ill-equipped to oversee retail crypto, adding that its approach could result in weaker safeguards for investors.
The CFTC action centers on developing rules within its existing authority for retail crypto activity, according to the materials provided by Cointelegraph, which also noted comments from Benjamin Schiffrin, director of securities policy at Better Markets.