Skadden Discusses CFTC Regulatory Issues for Cryptocurrencies

Digital or virtual currencies based on cryptography (commonly referred to as ‘‘cryptocurrencies’’) have picked up steam, with a surge in trading and dramatic increase in market value over the past year, and have attracted interest from mainstream finance and regulators alike. The former Chairman of the U.S. Commodity Futures Trading Commission (CFTC or Commission) made clear in 2014 that derivative contracts based on a virtual currency, which fits within the broad statutory definition of ‘‘commodity,’’ are ‘‘within [the CFTC’s] responsibility.’’[1]

Since that announcement in 2014, the CFTC has sought to better understand the cryptocurrency space, along with FinTech innovations

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Skadden Discusses a House Bill that May Shake Up CFTC Rulemaking

Less than two weeks into the new congressional session, the U.S. House of Representatives passed by a vote of 239 to 182 the Commodity End-User Relief Act1 (the Bill or House Bill), marking the first step by the new post-election Congress to pare down elements of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act (Dodd-Frank). The Bill would reauthorize the Commodity Futures Trading Commission (CFTC or Commission) for five years, at an annual budget level that would be unchanged from last year.2 Many key provisions in the House Bill, including some added on the House floor … Read more