U.S. CFTC Chair Announces Enhanced Regulatory Clarity for DeFi, Crypto Derivatives, and Prediction Markets

BlockBeats News, March 10th, according to CoinDesk, Heath Tarbert, former chairman of the United States Commodity Futures Trading Commission (CFTC), revealed that the agency is taking new steps to provide long-awaited regulatory clarity for decentralized finance (DeFi) developers, cryptocurrency derivatives, and prediction markets.

Tarbert, speaking at the Futures Industry Association's Boca Raton International Derivatives Conference this week, outlined how various U.S. agencies are now working more closely together to regain leadership in the digital asset space. He noted that through collaboration, he and Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), have advanced the "Project Open Door" initiative, signaling the end of internal disputes between the CFTC and SEC.

In his remarks, Tarbert reiterated that the CFTC will issue guidance clarifying how so-called prediction markets (referred to as event markets in regulation) can list and trade products under U.S. law. The agency will also commence a rulemaking process to solicit public feedback on its regulatory approach to this rapidly growing sector.

He stated that the CFTC also intends to tackle one of the most contentious regulatory issues in the crypto industry: "For years, there's been a question as to whether software providers trigger CFTC registration requirements," Tarbert said, "We intend to address that issue head-on." The agency is also addressing the classification of crypto perpetual derivatives, a product that holds a significant market share in the global crypto market.