SEC Pseudo-Outsources Crypto ETF Decisions to CFTC Through Futures Rule

SEC makes futures contracts the primary requirement for crypto ETF approvals. CFTC becomes the main gatekeeper deciding which assets get futures trading. No market cap, liquidity, or float requirements exist under the current framework. The SEC has effectively transferred crypto ETF approval authority to the CFTC by establishing futures contracts as the primary qualification standard for digital asset exchange-traded products. Bloomberg analyst James Seyffart described this arrangement as “pseudo-outsourcing” decision-making power to the derivatives regulator. Under the proposed listing standards, cryptocurrencies need only show six months of futures trading on the Coinbase derivatives exchange to qualify for ETF inclusion. This framework removes traditional investment product requirements and places the CFTC in control of which assets can access ETF structures. If the rule is finalized as-is, the SEC pseudo outsourced the decision making for which digital assets will be allowed in an ETF wrapper. The CFTC is the primary decider of what asset can have futures contracts & having futures is the primary requirement of this rule proposal https://t.co/PVFfUKvu… The post SEC Pseudo-Outsources Crypto ETF Decisions to CFTC Through Futures Rule appeared first on Coin Edition .

Source: Coin Edition