FIA CEO Expresses Concerns Over Cryptocurrency Self-Certification Process

In a Dec. 6 open letter to CFTC chairman Christopher Giancarlo, FIA CEO and President Walt Lukken outlined concerns with the process in which cryptocurrency futures have come to market. The letter came in response to recent announcements by CFTC-regulated exchanges and clearinghouses to self-certify certain futures and options contracts on cryptocurrencies. While reiterating its "firm supporters of innovation and competition in markets," the FIA CEO said the organization believes the launch of exchange-traded derivatives in cryptocurrencies warrants a "healthy dialogue between regulators, exchanges, clearinghouses and the clearing firms who will be absorbing the risk of these volatile, emerging instruments during a default," which he added was not possible through the launching of these products through the one-day self-certification process. This process, which does not require CFTC approval, "does not align with the potential risks that underlie their trading and