The U.S. Commodity Futures Trading Commission (CFTC) is developing a proposal to ensure that more derivatives exchanges keep customer funds separate from company cash.
The draft would expand the CFTC’s existing regulatory scope and would apply to exchanges that allow customers to trade without going through a brokerage firm.
CFTC Democratic member Kristin Johnson said the draft would help prevent FTX from competing for customer funds from its subsidiary LedgerX, which is regulated by the CFTC.
Kristin Johnson said rules requiring customer asset segregation should apply to any company using or pursuing a similar direct-to-customer model.
Whether they offer crypto products or other types of derivatives. In light of events such as the collapse of FTX, the CFTC should take immediate action to formulate rules to prevent customer funds from being misused or lost.