The CEO of FTX says he finds no inconvenience in the development of knowledge tests for the “retail trading” of derivatives. Provided, of course, that it is applied to all existing products and not only to those affiliated with cryptocurrencies.
SBF full agreement on CFTC knowledge tests
Currently in the process of obtaining the status of main regulator of cryptos, the CFTC is increasing its media appearances. On October 15, it called on its commissioner Christy Goldsmith Romero to survey the Twitter community about a consumer protection solution. This concerns a category including the “household retail investor” (or “domestic retail investor”) for the trading of derivatives.
Crypto pro-regulator Sam Bankman-Fried seems to be all for the idea of developing this test. Here is his tweet on the subject:
” 100% agree on disclosures, knowledge tests, etc.
I don’t know if it necessarily makes sense to be specific to cryptocurrencies – I think having, at least, mandates for disclosures and for knowledge-based testing for all FCM/DCM applying to the retail might make sense. »
Here is the translation of Christy Goldsmith Romero’s tweet:
” The creation of a category of retail investors could provide more protections for consumers. For example, disclosures that are written in a way that ordinary people can understand or that could be used to evaluate the rules on the use of leverage. »
Do not limit yourself to cryptocurrencies
As a reminder, derivatives trading consists of speculating on the future price of an asset (stock, fiat currency, bond, cryptocurrency, commodities, etc.) through the purchase or sale of derivative contracts. In addition, it should be noted that this new variation of assets promises optimized risk management. And crypto derivatives are also said to allow trading with leverage.
Coming back to SBF, he finds it illogical that the information and tests are specific to cryptocurrencies. It is therefore necessary to impose these tests on all derivative products and not only on cryptographic assets only.
However, we all know that disclosure and verification, including KYC, are not of interest to some cryptocurrency traders. This is why they are rushing to less restrictive exchanges like Bexplus. However, let’s hope that this desire to protect consumers can convince retail investors.
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