The us Commission on commodity futures trading (CFTC) after the SEC allowed its employees to invest in cryptocurrencies. The staff conducted outreach on the risks of these investments.
In the CFTC noted that Agency workers are fully entitled to trade digital currencies if they buy them without leverage and do not use the local insider information. Is strictly prohibited only operations with futures contracts on the bitcoin, which are the responsibility of the regulator.
General counsel Daniel Davis explained that this decision was taken in response to «numerous requests» from employees of the CFTC to allow them to do cryptocurrency activities not related to the work of the Ministry. How many employees are dedicated to investing in digital currency, is not specified.
«I am outraged at this decision. As this can further affect their governing decisions and significantly impair the Supervisory activities,» commented Professor at the University of Saint Mary (St. Mary’s University) Angela Walsh (Angela Walch), a specialist in digital currencies and financial stability.
According to Davis, cryptocurrency trading is not contrary to the guide to standards of conduct for CFTC. Under the law, a cryptocurrency is an intangible asset, a commodity. And because Agency staff may invest in physical commodities such as oil or corn, although the CFTC regulates futures contracts, where these kinds of products are the underlying asset, the leadership of the CFTC sees no reason to prohibit their employees to buy cryptocurrency.
The CFTC staff prohibited to invest in cryptocurrency in that case, if in fact the access to official information is known about the preparation of new regulatory requirements in respect of cryptocurrency, or about the ongoing investigation.
The securities Commission of USA (SEC) has also allowed its employees to make investments in the cryptocurrency. But in contrast to CFTC jurisdiction, the SEC is more focused on ICO (initial placement of tokens). According to the published in January of ethics Memorandum, this office does not have the right to invest in the ICO, while since the beginning of the embed will not work 7 days. Also the staff of the SEC must notify the Department of all your transactions with cryptocurrencies. In the CFTC such requirements to its staff there. According to the law, Federal agencies are entitled to set their own rules in such matters.