Number of clearing houses in crypto market may hike, CFTC Chairman says

Posted 02 May, 2019

On Wednesday, Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC) expressed expectations that higher interest in cryptocurrencies may boost the number of companies that will become regulated clearing chambers.

During the Congress adress, Christopher Giancarlo, unofficially known as "Crypto Dad" stated in his report to the House Committee on Agriculture, the subcommittee on commodity exchanges, energy and credit in Washington that clearing houses are critical risk points in the financial system for now.

“The Commission anticipates new applications for clearinghouse registration resulting from the explosion of interest in cryptocurrencies; an area in which protection of the cryptocurrencies will be one of the highest risks.”

Such centers act as an intermediary between the two organizations in a financial transaction, ensuring that buyers and sellers fulfill all contractual obligations. Giancarlo stressed that the agency intends to conduct more detailed checks at clearing houses in order to identify problems affecting their ability to control the risks associated with cryptocurrency operations.

The CFTC Chairman also confirmed that the commission when working with digital assets remains true to the previously voiced fundamental principles: focusing on the exponential development of the industry, creating new “market solutions”, increasing the technical literacy of employees.

Notice, that сrypto derivatives provider LedgerX operates as a clearing house now, but two platforms like ErisX and Bakkt are waiting to approve their applications to become derivatives clearing organizations (DCOs).

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