FIA CEO Sees “Natural Migration” Of Crypto Products Towards Futures Markets – Finance and Banking – United States – Mondaq News Alerts

United States: FIA CEO Sees “Natural Migration” Of Crypto Products Towards Futures Markets

10 November 2021

Cadwalader, Wickersham & Taft LLP

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FIA CEO Walt Lukken highlighted market and regulatory shifts in light of technological advancements with respect to cryptocurrency and the post-trade settlement process.

In remarks before the FIA Futures & Options Expo, Mr. Lukken observed the “confluence of major trends impacting our markets” including “from climate change to inflation to retail to crypto,” and he opined that “change seems no longer linear; it feels exponential.” He expressed confidence in a “natural migration” of crypto products towards futures markets, noting that the CFTC’s regulatory regime is “flexible, principles-based” and “provides exclusive federal jurisdiction for registrants and preempts state-level rules.” He also urged the Senate to confirm CFTC Acting Chair Rostin Behnam.

Mr. Lukken raised questions on the adequacy of oversight and regulation of crypto assets cash markets and decentralized finance, as well as the protection of retail investors in such products.

Further, Mr. Lukken underscored the importance of modernizing the settlement process in light of technological advancements in the crypto industry and the significant market volatility that resulted from the pandemic. He touted an FIA report entitled “Modernising the Listed Derivatives Workflow: A Blueprint for Change,” which recommended the creation of an independent market standards body to supervise the development of trade and clearing lifecycle market standards and best practices.

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