In a letter to CFTC Chair J. Christopher Giancarlo, U.S. Senate Committee on Agriculture, Nutrition and Forestry Chair Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) requested information on oversight of cryptocurrency futures and options.
In connection with recent launches of bitcoin futures trading on three exchanges, the Senators asked the following questions:
- how the CFTC has carried out surveillance activities to ensure that risks are appropriately addressed;
- if safeguards for investor protections agreed on by the exchanges, such as increased margin requirements, have been effective, and if the CFTC anticipates adjusting the safeguards;
- to what degree CFTC oversight capabilities are constrained by resource limitations, and how resources could be used to improve oversight;
- for the scope and adequacy of information shared between futures exchanges and underlying cash-market bitcoin exchanges;
- how the CFTC surveillance program would be bolstered by direct access to underlying cash-market bitcoin exchanges; and
- how the CFTC has coordinated and plans to coordinate with other government entities and law enforcement authorities concerning cryptocurrencies.
Commentary / Jeff Robins
Coming less than two months after the launch of bitcoin futures trading, it is probably a bit early to expect definitive conclusions on the CFTC's recent surveillance activities. But the Senators' letter is an encouraging signal that lawmakers are paying close attention to developments and Chairman Giancarlo's response will be interesting. In recent public statements, Giancarlo highlighted the statutory limits on CFTC management of the self-certification process and called for a reappraisal of federal oversight over cryptocurrency trading. In light of those statements, the letter appears to be an invitation to begin that reappraisal.
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