WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with the announcement by the Commodity Futures Trading Commission (CFTC) that listed spot crypto products will begin trading for the first time on CFTC-registered futures exchanges:

“Acting Chair Pham’s announcement that spot crypto products can now trade on CFTC-registered exchanges raises more questions than it answers. The announcement does not specify what spot crypto products may now trade on CFTC-registered exchanges. The announcement also does not specify on which CFTC-registered exchanges such products may now trade. Nor does the announcement explain the CFTC’s reasoning for finding such trading permissible or specify any rules or guidance that will govern such trading. Far from providing regulatory clarity, the announcement may only lead to investor confusion.

“This is especially troubling since Acting Chair Pham’s statement suggests these products will be geared towards retail investors. Just last week, we urged the CFTC to move cautiously when effectuating regulatory changes that could lead to greater retail investment in crypto. Unfortunately, it appears the CFTC is doing the opposite, which given the risk and volatility of crypto as an asset class could lead to disaster for retail participants in crypto markets.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.