CFTC renews efforts amid explosion in retail trading of futures, options, crypto

Rick Steves

The CFTC has reorganized the agency’s FinTech and customer protection efforts in order to address changing markets and market demographics, the regulator said in a statement. 

CFTC Chairman Behnam announced the creation of the Office of Technology Innovation (OTI), formerly LabCFTC, and named Jorge Herrada as its director. In addition, finTech specialist Jason Somensatto will join the Chairman’s Office along with legal advisor David Felsenthal.

The regulator also announced the realignment of the Office of Customer Education and Outreach (OCEO) within the Office of Public Affairs. This aims to respond to the unprecedented rise in retail futures, options, and digital asset trading.

Steve Adamske, the director of the Office of Public Affairs, will serve as interim director of OCEO.

New participants, new infrastructure providers

Rostin Behnam, Chairman of the Commodity Futures Trading Commission, said: “The accelerated engagement with FinTech through LabCFTC fulfilled its mission as set forth by former Chairman Giancarlo, and the clear intersection between financial innovation and our markets now requires an updated strategy.

“Our resources will be better utilized through an Office of Technology Innovation, reporting directly to the Chairman’s office and staffed by a Director, a FinTech Policy and Technology Specialist, a strategic Communications and Education leader, and rotational opportunities for all CFTC employees to gain exposure and expertise”, he continued.

“As new participants and infrastructure providers access and participate in our markets, the CFTC has a greater responsibility to provide trusted and verifiable information, education and outreach. Customers and market participants alike must act responsibly, and it is incumbent upon regulators to ensure that the investing public, including those in underserved communities, has the tools and information to make informed decisions that may impact their personal finances and the larger markets. OCEO is well equipped to do just that.”

Herrada, Somensatto, and Felsenthal specialized in digital assets

Jorge Herrada, the new director of the Office of Technology Innovation, joins the CFTC after one year as the Senior Technology Advisor to the TechLab at the Federal Reserve Board of Governors, where he helped to guide the vision and experiments regarding Central Bank Digital Currency (CBDC).

He specializes in advanced technology, analytics, finance, Distributed Ledger Technology (DLT), and cryptocurrencies, having led the CFTC’s DLT Subcommittee, and the High-Frequency Subcommittee.

Jason Somensatto, who joins Chairman Behnam’s office as FinTech Policy Specialist, joined the CFTC last year as Acting Director of LabCFTC. He’s been active in the development of exchange infrastructure for the digital asset market.

David Felsenthal, the newly appointed counsel to the Chairman, works on issues related to digital assets, climate, and other matters, having led the derivatives practice at Clifford Chance US LLP.

  • Read this next

    Fintech

    Nubank makes impressive turnaround, posting $1 billion profit in 2023

    Brazil’s Nubank has made a remarkable turnaround, swinging from a net loss in 2022 to a $1 billion net profit in 2023. The digital bank’s revenues have soared past $8 billion, marking a major milestone in its financial performance.

    Retail FX

    Spanish watchdog warns of UP MARKETS, BITBINX

    The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, announced in a statement that it has added to its warning list new website that are illegally offering financial services to Spanish citizens.

    Digital Assets

    MicroStrategy buys 3,000 more bitcoins, suffers phishing attack

    MicroStrategy, the largest corporate investor in bitcoin, has expanded its cryptocurrency portfolio by buying an additional 3,000 bitcoins for $155 million.

    Crypto Insider

    Saudi Launches World’s First Cultural Metaverse

    The Saudi Ministry of Culture, droppGroup, and Oracle have joined forces to launch the Cultural Universe, the world’s first government-operated national Metaverse initiative.

    Retail FX

    eToro revives IPO plans after failed $10B SPAC merger

    Israeli social trading network eToro is actively exploring options for a public market listing, according to CEO Yoni Assia in an exclusive interview with CNBC.

    Digital Assets

    Meme Coin Communities Gear Up for the CoinMarketCap Crypto Awards

    CoinMarketCap’s Crypto Awards 2024, the first edition of a new annual event, is captivating the global crypto community. This is especially true for the Meme Coin Of The Year category, where voting has become a battleground for the most passionate and vibrant communities in the crypto space.

    Digital Assets

    Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards

    The Layer-1 Received the Top Honor at the Eurasia Awards While Experiencing a Period of Unprecedented Growth and Recognition

    Crypto Insider

    Vitalik Buterin, Sandeep Nailwal Lead Decentralized AGI Summit, Address Centralized AI Risks at ETHDenver

    Sentient and Symbolic Capital’s Decentralized AGI Summit will feature leading Decentralized AI authorities like Vitalik Buterin and Sandeep Nailwal.

    Digital Assets

    Aethir Unveils Its First Decentralized AI Node Sale

    Aethir, a leader in decentralized GPU cloud infrastructure, has announced its highly anticipated Node Sale.

    <