The National Futures Association (NFA), an independent self-regulating organization that oversees derivatives activity in the United States, is introducing rules to provide greater compliance enforcement for digital assets activities among its members. This crucial shift in policy was highlighted in an official statement that was released on March 29th. This new rule will be effective starting on May 31st this year.

The NFA is looking to impose a tighter grip on firms involved in digital assets trading. The organization has over 100 members who are dealing in this space, and this compliance rule will give the NFA the ability to take action and protect the public when members commit fraud or similar misconduct.

The rule takes the power of self-regulation one step further and it is heavily focused on the two major digital assets, Bitcoin and Ether. Members operating in this space now need to implement more vigilant supervisory policies and procedures over their activities.

However, the lack of an authoritative guidance from the federal agencies like Commodity Futures Trading Commission (CFTC) means that the NFA’s rule can be difficult to enforce. Several legislative proposals have been put forward by the U.S. Congress to give CFTC clear powers over digital commodities and the spot market but no action has been taken yet.

It will be interesting to see how the digital asset space grows in the U.S. given the complexities that come with the lack of clear regulations across the country. Nonetheless, the NFA’s move to impose greater compliance on its members is a positive step towards ensuring a more secure trade environment.



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