CFTC (Commodity Futures Trading Commission)

The Commodity Futures Trading Commission is an independent U.S. federal agency established in 1974 that regulates the derivatives markets, including futures, swaps, and certain options, protecting market participants and the public from fraud, manipulation, and abusive practices.

In the crypto space, the CFTC has regulatory authority over digital assets classified as commodities rather than securities. The agency has determined that Bitcoin and Ethereum qualify as commodities, giving the CFTC jurisdiction over futures and derivatives contracts based on these assets. The CFTC oversees designated contract markets like the Chicago Mercantile Exchange that offer Bitcoin and Ethereum futures, as well as swap execution facilities and derivatives clearing organizations handling crypto derivatives.

The CFTC's enforcement division has brought numerous actions against crypto platforms for operating unregistered derivatives exchanges, offering leveraged retail commodity transactions without registration, and engaging in fraud and manipulation. The agency works alongside the SEC in regulating the crypto industry, though jurisdictional boundaries remain contested, with the CFTC advocating for broader authority over spot crypto markets for assets deemed commodities. The CFTC requires registration of crypto derivatives exchanges and implements customer protection rules including capital requirements and segregation of customer funds.