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Regulation

Tassat will be able to launch Bitcoin swaps after all, says CFTC

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4 Monaten ago

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The United States Commodity Futures Trading Commission will still be allowing New York-based fintech firm Tassat to proceed with its Bitcoin swap contracts after failing to meet regulatory requirements.

According to a Sept. 15 statement from the CFTC’s Division of Market Oversight (DMO), the regulatory body will not stop Tassat from launching a swap execution facility (SEF) in Q4 2020, even after the firm failed to renew its registration following 12 consecutive months without trading.

“DMO will not recommend the CFTC commence an enforcement action against Tassat for failing to reinstate its SEF registration,” the DMO stated. The regulatory body’s decision extends to Tassat listing certified Bitcoin (BTC) swap contracts and participants who trade the contracts.

After applying to become a regulated crypto derivatives exchange with the CFTC in November, Tassat failed to launch its swaps exchange by Aug. 1, when the regulatory body labeled the firm as “dormant.” Tassat has reportedly claimed the oversight was due to delays caused by the current pandemic, and requested to be exempt from applying to reinstate its status as an SEF.

The CFTC’s decision grants Tassat relief from the reinstatement requirements, and brings it closer to launching a crypto derivatives exchange with full regulatory oversight. The fintech firm reportedly hopes to list physically-delivered BTC derivatives for institutional investors starting in Q4 2020.

Tassat had not responded to Cointelegraph’s request for comment as of press time.



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Regulation

File comments against new crypto FinCEN rule, Coin Center leader urges

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2 Stunden ago

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Dezember 29, 2020

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With the two-week commentary period winding down, Jerry Brito, executive director of non-profit crypto policy advocate group Coin Center, says comments could make a difference in the ultimate outcome of the self-custodied wallet ruling recently proposed by the U.S. Treasury. 

“Coin Center is working with folks in Congress to get some letters sent to Secretary Mnuchin requesting an extension to the rushed comment period,” Brito said in a Dec. 28 tweet, adding:

“Everyone in the cryptocurrency ecosystem should file a comment with FinCEN explaining how this rule would affect them and pointing out the unintended consequences. Filing a comment really does help.”

With his likely exit from office looming next month, U.S. Treasury Secretary Steven Mnuchin dropped a regulatory proposal on the crypto space on Dec. 18. If passed, the new law would essentially mandate that U.S.-based crypto services must check users’ identities and their respective wallets whenever they withdraw over $3,000 to a self-custodied wallet, or if they move more than $10,000 to another platform.

Rather than the normal 60-day period, the regulatory body only left the crypto industry with a 15-day window for feedback on the proposal. Brito posited feedback from the crypto industry could help the situation by pushing back the deadline.

“Mnuchin wants to get this rule finalized before he leaves office on Jan 20,” Brito tweeted. “But FinCEN is required by law to consider every comment before finalizing the rule,” he added. “If there are a lot of substantive comments filed, they won’t be able to finalize the rule before Jan 20.”

Pushing the proposal’s decision date past Jan. 20 would leave the law undecided until after government leaders change seats. Delaying the proposal through that date would likely lead to a more thought-out legislation, according to Brito.

“Ideally you should write a unique, substantive letter that describes how the rule will affect you or your firm,” he added, pointing toward an example proposed on Twitter by Jake Chervinsky, general counsel for crypto project Compound. Comments need to be in to the Treasury by Jan. 4. Industry folks can also send in shorter remarks via a digital rights entity called Fight for the Future.

U.S. regulatory bodies have ramped up their engagement in the crypto space in 2020, evident in a number of headlines throughout the year.