The Commodity Futures Trading Commission (CFTC) is an independent federal agency that regulates the derivatives markets, including futures contracts, options, and swaps, in the United States. Its goals include promoting competitive and efficient markets and protecting investors from manipulation, abusive trade practices, and fraud. The Commodity Exchange Act was enacted by Congress in 1974.
Understanding the Commodity Futures Trading Commission
The CFTC consists of five commissioners who are appointed and approved by the President. Commissioners serve five-year staggered terms. The president appoints one of these commissioners as chair, and no more than three commissioners at any one point can come from the same party.
These five commissioners serve on various committees focusing on agriculture, finance, environment, energy, and technology markets, global financial markets and market risk, and trade. A committee that focuses on cooperation between the CFTC (Commodity Futures Trading Commission) and SEC (Securities and Exchange Commission) is inactive. Members of the committees include representatives from different industries, traders, futures exchange, commodity exchanges, consumers, and environmental groups.
The Commodity Futures Trading Commission (CFTC) was established by Congress in 1934 to regulate the trading of commodity futures contracts. Under the CEA, the CFTC has the authority to establish rules that are published in Title17, Chapter 1 of the CFR.
The CFTC warns investors about cryptocurrencies. According to the CFCC website, several studies and news reports indicate a large number of ICOs are fraudulent, or the underlying product or service fails to live up to its promise. “Estimates of fraud range from 5% to more than 80% of ICOs.”