The United States Commodities Futures Trading Commission has announced that it has a specific goal to make crypto regulations its target for the next four years. Announcing the plan that would run from 2020 through 2024, the world’s premier derivatives regulator affirmed that they have decided to make the regulation of digital assets their premium goal. The commission noted that the plan already went through the much-needed approval and had a comment period of 30 days, which ended in June.
New strategy to run through four years
As stated in the officially released statement, the strategic plan would make the CFTC focus their lenses on the five strategic goals. This would include encouraging and building innovation while enhancing the supervisory experience of digital assets. According to the document, Financial markets quickly adopt emerging technologies, and our derivatives markets have experienced an incredible digital transformation that presents opportunities and risks.
The commission also noted that regulatory institutions should also plan to go by the regulations while strengthening innovations that play essential roles. The CFTC also set the provision of promoting innovation by avoiding rules that reflect long-gone business practices. Furthermore, the commission said they view digital assets as the 21st-century commodity. The commission also noted another part of the strategy also touches the risk and opportunities arising from digital assets as a whole.
Crypto derivatives market records maximum growth
The CFTC also plans on implementing the objectives by developing an innovation promotion framework. Giving their statement on how they will go about it, the report said, “We will develop a holistic framework to promote responsible innovation in digital assets”. With the crypto regulation, the four-year strategic plans also take a peek at strengthening the resilience of derivative markets. They also noted that they would reduce market manipulation and enforcing deterrents to bad actors.
In the words of the chairman of CFTC, Heath P. Tarbet, he said, “The strategic plan which was finally approved unitedly gives the Commission an additional focus to move forward not for the next four years, but perhaps for the next ten or beyond.” With the derivatives market currently gaining ground in the crypto industry, financial derivatives like Bitcoin options and futures contracts attract massive patronage from institutional investors.