CFTC can take steps now to protect crypto customers: Johnson

Quick Take

  • The Commodity Futures Trading Commission’s Kristin Johnson said the agency should take steps to figure out where the agency does not have “parallel” regulations between disintermediated and intermediated markets. 
  • This comes a month after Commissioner Johnson made a call to action for new rules and for Congress to give the agency the authority to regulate digital assets. 

The Commodity Futures Trading Commission’s Kristin Johnson said the agency should consider steps it can take under its current regulatory authority to protect customers following the failure of FTX. 

Democratic Commissioner Johnson said she has spoken with fellow commissioners and with other divisions inside the agency to look at differences in custody regulations for intermediated and disintermediated market structures.  

Futures commissions merchants, or FCMs, for example, must separate out customer assets as an intermediary, Johnson said on Wednesday at a conference hosted by Berkeley Law. FCMs solicits or accepts orders to buy or sell futures contracts.  

“In non-intermediated markets, we don’t have parallel statutory or regulatory protections,” Johnson said.