US CFTC allows cryptocurrency trading for its employees, following the “numerous inquiries” from employees in regards to the matter of cryptocurrency investment. A spokesperson for CFTC chair J. Christopher Giancarlo has also reportedly stated that employees are prohibited from investigating or participating in regulatory actions that involve cryptocurrencies they own.
1 March, AtoZForex – The US Commodity Futures Trading Commission (CFTC) has permitted its employees to invest in cryptocurrencies, according to the online media reports. It appears that the general counsel of the CFTC, Daniel Davis, has given the green light in a memo earlier this month.
US CFTC Allows Cryptocurrency trading for its employees
It is also known that this move has been a response to “numerous inquiries” from employees in regards to the matter of cryptocurrency investment. Now, the employees of the CFTC have the permission to trade cryptocurrencies. However, they are still prohibited from crypto futures or margin trading. They also cannot use the insider information obtained via their jobs.
A spokesperson for CFTC chair J. Christopher Giancarlo has also reportedly stated that employees are prohibited from investigating or participating in regulatory actions that involve cryptocurrencies they own. This is due to the “conflict of interest.”
The memo from Mr. Davi memo also highlights the need for the employees to act ethically:
“In this environment, the situation is ripe for the public to question the personal ethics of employees engaging in cryptocurrency transactions. Please keep in mind that you must endeavor to avoid any actions creating the appearance that you are violating the law or government and commission ethical standards.”
Legal experts’ perspective
Yet, some of the legal experts are still questioning the decision of the CFTC. According to some of the online reports, an associate law professor with a specialty in digital money and financial stability at St. Mary’s University, Angela Walch, has stated that this decision is “mind-boggling.” She also added that this decision “could absolutely skew their regulatory decisions.”
Another expert, Richard Painter, a securities lawyer, and former White House ethics lawyer, has stated that CFTC should not be permitting its employees to invest in cryptos. This is due to the fact that cryptocurrencies are similar to the futures than commodities.
Nevertheless, there was some positive feedback, too. A law professor at Washington University, Kathleen Clark, has stated that the move is logical. Since cryptocurrencies are now perceived as commodities, the present “ethics standards seem to be general enough to cover it.”
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