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SRO for digital assets
Does the digital assets industry need a self-regulatory organization (SRO) to ignite its future amid aggressive enforcement and legislative inaction in the United States?
The National Futures Association (NFA) appears to be doing its part with new rules on digital assets for its derivative industry members. In a press release, NFA announces that it “recently adopted NFA Compliance Rule 2-51, which imposes anti-fraud, just and equitable principles of trade, and supervision requirements on NFA Members and Associates that engage in digital asset commodity activities. The Rule’s scope is currently limited to Bitcoin and Ether.” Read the release.
Commodity Futures Trading Commission (CFTC) Commissioner Caroline Pham applauded NFA’s initiative. “It’s critical to have an effective SRO like the NFA as a partner in the CFTC’s mission. I commend NFA for taking action now on spot digital asset commodity markets, including Bitcoin & Ether, to protect retail with this anti-fraud, conduct, disclosure & supervision rule,” tweeted Commissioner Pham on Friday afternoon.
Rule 2-51. Requirements for Members and Associates Engaged in Activities Involving Digital Asset Commodities – National Futures Association
Statement of Commissioner Caroline D. Pham Regarding NFA Rule on Spot Digital Asset Commodity Activities – CFTC.gov
Self-Regulatory Organization (SRO): Definition and Examples – Investopedia