What is Commodity Futures Trading Commission (CFTC)?
Let's find out Commodity Futures Trading Commission (CFTC) meaning, definition in crypto, what is Commodity Futures Trading Commission (CFTC), and all other detailed facts.
The CFTC was launched back in 1974, with the portrayal of the Commodity Futures Trading Commission Act. Back then, the majority of futures trading was aimed at the agricultural part of the country.
The CTFC was forced to broaden and improve at some point. Likewise, its authority is required to have access to foreign currencies, worldwide government securities, and stock indexes.
The task of regulating futures and options markets has gotten increasingly difficult over time, particularly with the development of fintech and digital currencies such as Bitcoin.
The Commodity Futures Trading Commission (CFTC) is a separate government organization in charge of the derivatives markets. The main objective is to include the development of ambitious and competitive markets, as well as the defense against fraud, manipulation, and unfair commercial practices.
At the time when Commodities Futures Modernization Act, which took place in 2000, was passed, the Commission's role was enlarged to include the development of a cooperative regulatory system for single-stock futures in collaboration with the Securities and Exchange Commission (SEC).
Also, the CFTC has shifted to offer extra control to the dollar swaps market after the 2008 financial disaster and the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010.
It was 2014 when the CFTC revealed that there is a debate about whether it should manage Bitcoin. Since then, it has taken the position that Bitcoin is a commodity under the Commodity Exchange Act.