Cointime

Cointime

Download App
iOS & Android
Home / Policy

CFTC Proposes Rule Changes to Address Crypto Volatility and Digital Asset Risks

The U.S. Commodity Futures Trading Commission (CFTC) is proposing changes to its risk management rules, which will require firms to prepare for the volatility of cryptocurrencies and the risks associated with holding customers' digital assets.

Commissioner Christy Goldsmith Romero stated that technological advancements such as digital assets, artificial intelligence, and cloud services have emerged as areas that carry significant risk and require regulatory oversight.

The CFTC will accept public comments for 60 days on its "advance notice of proposed rulemaking" before a formal proposed rule and a final version vote. Goldsmith Romero also highlighted the potential risks posed by brokers holding customer property in the form of stablecoins or other digital assets.

CFTC Crypto
Comments

All Comments

Recommended for you

  • Russian President Vladimir Putin officially signs digital currency tax law

    Russian President Vladimir Putin has signed a law regulating the taxation of digital currencies. According to the law, digital currencies are recognized as property. This also applies to currencies used for foreign trade payments within the experimental legal framework (EPR) in the field of digital innovation. Mining and sales of digital currencies are exempt from value-added tax. Operators of mining infrastructure must report to the tax authorities issuing cryptocurrencies for using their services. Failure to submit such information on time may result in a fine of 40,000 rubles. In terms of personal income tax, digital currencies obtained through mining will be classified as physical income (usually used when goods or services are paid for instead of currency). The value of the income currency will be determined based on market quotes. Such income will be subject to progressive taxation, taking into account tax deductions for mining costs. At the same time, the acquisition, sale or other circulation of digital currencies will be subject to two-stage personal income tax rates (13% for income up to 2.4 million rubles, and 15% for income exceeding this amount). They will be included in the same tax base as securities, bank deposits, and other sources of transaction income. As for corporate income tax, digital currency mining will be subject to the standard tax rate (25% from 2025 onwards).

  • Taiwan forces cryptocurrency providers to register for anti-money laundering

    after authorities imposed fines on two cryptocurrency exchanges for related violations, Taiwan, China has advanced new anti-money laundering (AML) regulations for cryptocurrency businesses. On November 27, the Financial Supervisory Commission (FSC) announced that the upcoming registration requirements for anti-money laundering for cryptocurrency exchanges would be postponed from the previous deadline of January 1, 2025 to November 30. According to previous notices, virtual asset service providers (VASPs) that have not registered with the government may face up to two years imprisonment or a maximum fine of NT$5 million (US$155,900).

  • Supreme People's Procuratorate: Enhance the ability to combat money laundering crimes using new technologies and products such as virtual currency

    newly revised "Anti-Money Laundering Law of the People's Republic of China" will come into effect on January 1, 2025. The Secretary of the Party Group and Procurator-General of the Supreme People's Procuratorate, Ying Yong, emphasized the need to strengthen cooperation to combat money laundering crimes, accurately grasp the provisions of the revised anti-money laundering law on improving the scope of upstream money laundering crimes, and implement the anti-money laundering law and the criminal law's provisions on "money laundering" in a comprehensive manner. Accurately apply the "Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering," deepen the three-year action to combat and govern illegal money laundering crimes, punish money laundering and related crimes in accordance with the law, enhance the ability to combat money laundering crimes using new technologies, products, and businesses such as virtual currencies, and form a joint force to combat money laundering.

  • Hong Kong Central Bank to Subsidize Companies Issuing Tokenized Bonds

    Hong Kong Monetary Authority (HKMA), Hong Kong's central bank, has launched a program to subsidize part of the cost of issuing tokenized bonds in order to encourage more tokenization in its capital markets.

  • Pennsylvania Passes "Bitcoin Rights" Bill and Considers Strategic Bitcoin Reserve Amid Criticism and Potential Economic Benefits

    Pennsylvania has passed the "Bitcoin Rights" bill, which protects the rights of individuals and businesses to self-custody digital assets, operate blockchain nodes, and conduct transactions without interference from restrictive municipal ordinances. This move establishes Pennsylvania as a leader in digital asset regulation and demonstrates its commitment to fostering innovation in the sector while addressing issues such as economic empowerment and financial inclusion. Additionally, two Republican Representatives have introduced the Strategic Bitcoin Reserve Act, which would allow the state treasurer to allocate up to 10% of Pennsylvania's funds into bitcoin and crypto-based exchange-traded products. However, critics have raised concerns about the risks of holding bitcoin in government reserves, including extreme price volatility and security vulnerabilities, as well as environmental concerns related to bitcoin mining's energy consumption. Despite this, Pennsylvania's proactive approach to fostering a crypto-friendly environment positions the state as a model for equitable digital asset adoption and underscores the growing role of state governments in shaping the future of the digital economy.

  • It is reported that Trump may meet with Ripple CEO and other crypto industry representatives to discuss the formulation of US crypto policy

     Ripple CEO Brad Garlinghouse recently gave an interview to Fox News and talked about his feelings regarding Trump's victory in the 24th US presidential election. There are reports that Brad Garlinghouse and other representatives from the cryptocurrency industry may meet with Trump to discuss participating in the formulation of US cryptocurrency policies. Fox News asked Brad Garlinghouse about this matter, and although it has not been confirmed, his response seemed to suggest that he would be open to it. Brad Garlinghouse said, "I won't comment too much on the details here. Throughout the entire election cycle, we have been actively supporting cryptocurrencies and innovation, and we will continue to work with more friendly government officials to get rid of current regulations through law enforcement."

  • EU regulators set out guidelines on restrictions for cryptocurrency providers

    the European Banking Authority (EBA) is the European regulatory agency responsible for addressing weaknesses in the European banking industry. It has issued two sets of guidelines, including specific guidelines for payment service providers (PSPs) and cryptocurrency asset service providers (CASPs). On November 14th, EBA released guidelines that specify the measures that PSPs and CASPs must take when transferring funds or cryptocurrency to comply with EU and national restrictive measures. According to EBA, these guidelines ensure the implementation of EU and national sanctions. EBA believes that weaknesses in control, internal policies, and procedures may pose legal and reputational risks to financial institutions (including PSPs and CASPs). In addition, weak links in these areas for financial institutions may also "weaken" the effectiveness of the EU's restrictive measures system. The European Banking Authority emphasizes that this may lead to rule evasion, thereby affecting the stability of the EU's financial ecosystem. According to ECA, these guidelines will apply from December 30, 2025.

  • Cardano founder confirms he will work with Trump administration on crypto legislation

     Cardano founder Charles Hoskinson has confirmed plans to collaborate with the US government under the leadership of President Trump to help formulate cryptocurrency legislation. The goal is to create a clear regulatory framework for the cryptocurrency industry, which has faced uncertainty and regulatory challenges for years. Hoskinson announced these plans in a recent speech and stated that developing positive policies regarding cryptocurrency requires support from both the Democratic and Republican parties. He stated that his company, Input Output Global (IOG), will establish a separate policy department for cryptocurrency regulation. This office will focus on developing a legislative framework that incorporates the provisions of the 21st Century Financial Innovation and Technology Act (FIT21) and the Responsible Financial Innovation Act (RFIA). He added, "I will work with legislators and the government to push for a bipartisan bill to be passed."

  • UK House of Lords backs Digital Asset Property Bill

    members of the UK House of Lords expressed support for the country's digital asset property bill during a second reading session on Wednesday. The House of Lords Committee generally believes that the bill will provide more clarity on how the legal system treats cryptocurrencies and may mark another step forward for the UK in paving the way for domestic cryptocurrency use. The bill was drafted by the independent statutory body, the Law Commission, and was launched in the UK in September. The bill adds a new "property" category within the scope of property to help resolve legal disputes involving cryptocurrencies. The bill will not only help judges in criminal proceedings involving cryptocurrency theft due to fraud or hacking, but will also help divide marital property.

  • UAE to introduce legal framework for DAOs

    The United Arab Emirates is focusing on introducing a legal framework for decentralized autonomous organizations (DAOs) in the Ras Al Khaimah Digital Asset Oasis (RAK DAO), a free economic zone dedicated to digital assets. Law firm NeosLegal and RAK DAO announced that the new system will be launched and discussed at the DAO Legal Clinic on October 25th. Irina Heaver, a partner at NeosLegal, said that the framework is expected to clarify how DAOs can remain legally compliant, and she believes this will have a significant impact on decentralized governance in the UAE and the wider Web3 ecosystem. The announcement emphasizes that the legal structure will clarify tax obligations and benefits. It will also establish property rights for on-chain and off-chain assets and provide legal protection for the founders, members, and contributors of the DAO from personal liability. The legal framework will also enable DAOs to enter into legally binding contracts and establish guidelines for resolving internal and external disputes.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company