The CFTC is proposing to create a specific category for crypto investors

Whereas Commodity Futures Trading Commission (CFTC) are increasingly tipped to take over oversight of cryptocurrency marketssays one of its commissioners, Christy Goldsmith Romero, that in this perspective, the regulatory body should review the way it categorizes retail investors.

Setting up a new profile for crypto investors

A consensus appears to be emerging in the United States for the CFTC to go beyond its current jurisdiction in futures and derivatives and become authoritative in the cryptocurrency spot markets. The condition: Settle the debate between financial securities (securities) and raw material (raw materials).


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In anticipation of this new allocation, one of the commissioners of the federal agency, Christy Goldsmith Romero, was quick to offer suggestions. She wants especially by redefining the nature of a retail investor, noting that with cryptos it is a more widespread profile that will come to the markets regulated by the CFTC, traditionally invested by institutional investors.

According to information shared by Coindesk, it would like to add a new category to distinguish one from the other, knowing that until then, for the CFTC, a retail customer is a person whose total assets do not exceed $10 million. A performance for the less broad, which from his point of view is no longer adapted to the situation.

What I’m proposing is that we cut that definition of retail in half, and then we can target the rules and regulations to ordinary households that might not be necessary for a hedge fund or a millionaire.

Christy Goldsmith Romero, CFTC Commissioner, on The Block

The intention is to help the agency treat ordinary crypto users differently from other investment players. It would be a matter of taking into account their specificity in order to better protect them, even if that means imposing restrictions on them.. This, she says, would be “a great way to expand access to financial markets”.

You want to make sure that you can provide expanded access to retail investors, but in a way that is safe and affordable for them, quite different from what is available to a high net worth individual.

Christy Goldsmith Romero, CFTC Commissioner, in CoinDesk

Regulation in the name of investor protection

This concern for the protection of crypto investors is one of the great workhorses of the regulators. Often they compare the crypto-ecosystem to the Wild West, and the news unfortunately often bears witness to this, swinging this argument like a mantra, sometimes even to conveniently justify the indefensible (violated privacy, unfair treatment in access to wealth, etc.).

But either way, the lexical pair implies risk/protection. She is even the condition sine qua non required for a license to control the sector. So recently, The CFTC, like the SEC and two other federal agencies, was strongly encouraged to certify the means each has undertaken to combat fraud and fraud related to cryptocurrency.


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The CFTC Commissioner plans to issue a written proposal soon to define a new category of retail investors. To this end, it will seek comments from the public and the various decision-makers.

Remember that while the EU has adopted a piece of legislation, the famous MiCA, to regulate the crypto industry, the US is lagging behind. There is not yet a unified federal system, much to the chagrin of players in the sector. However recent bipartisan bills seem to indicate that the CFTC will step in to oversee the cash markets if Congress clearly defines the term “digital commodity”.

Regulation that does not let go is an indicator that cryptocurrencies are here to stay, so if you also want to board the crypto ship before restrictions or other joys, do not wait any longer to register on the Bytbit platform ( link commercial).

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