FIA CEO Sees “Natural Migration” Of Crypto Products Towards Futures Markets – Finance and Banking

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

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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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