The National Futures Association (NFA), the self-regulatory organization for derivatives markets in the United States, has issued a new compliance rule for its members engaged in digital asset commodities. The rule, which takes effect on May 31, is aimed at addressing fraud and misconduct committed by the over 100 NFA members involved in activities related to Bitcoin and Ether.
The NFA submitted the proposed new rule to the secretary of the Commodity Futures Trading Commission (CFTC) in a letter dated Feb. 28, 2023. The organization explained that while it has over 100 members engaged in activities with digital asset commodities, it had no way to address fraud or misconduct committed by those members. The new rule is designed to complement the requirements issued in 2018 and is modeled on the NFA’s antifraud rules for exchange-traded futures, swaps transactions, and retail foreign exchange.
As the only registered self-regulatory…
