Cftc's Latest Move Overlooks Ledgerx.

The CFTC's new proposal strengthens regulations to enhance liquidity for futures commission merchants and derivative clearing organizations.

The United States Commodity Futures Trading Commission (CFTC) has shifted its focus to how companies manage customer assets.

The CFTC's recent proposal aims to enhance regulations for futures commission merchants (FCMs) and derivative clearing organizations (DCOs). According to this proposal, such companies will now be required to invest customer funds in highly liquid assets. However, the updated rules did not take into account LedgerX's operating model.

LedgerX directly interacts with its customers and operates as a DCO, deviating from the traditional FCM intermediary role.

CFTC Commissioner Kristin Johnson expressed her concerns, emphasizing that the regulatory framework is lagging behind the rapid evolution of the industry. Formerly owned by FTX and now part of Miami International Holdings, LedgerX operates by providing direct customer access.

LedgerX has drawn attention by conducting cryptocurrency transactions for customers directly, unlike traditional practices that involve intermediaries. The company has strengthened its operations with advanced consumer protections like asset segregation and obtained several CFTC registrations.

However, Johnson advocates for a revised regulatory framework that provides uniform protection for retail customers, considering all of these processes.