CFTC Chair Mike Selig said Wednesday on Fox Business Network that new rules would prevent another collapse similar to FTX. The CFTC this week launched a public consultation on a framework that would create a new federal registration category called a crypto asset market for platforms offering leveraged, margined or financed trades to retail customers. The initiative comes four years after FTX’s collapse, whose founder Sam Bankman-Fried is currently serving twenty-five years in prison for fraud after eight billion dollars in customer funds were stolen. Selig highlighted that FTX subsidiaries registered with the CFTC had preserved funds through segregation, arguing that the regulator would apply these stringent requirements to the crypto asset sector.
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