The US Commodity Futures Trading Commission (CFTC) has announced the appointment of BNY Mellon and Franklin Templeton as co-chairs of its newly formed Digital Assets Market Subcommittee. This subcommittee aims to address crucial issues related to digital assets and contribute recommendations on derivatives and trading platform policies in the US.
Caroline Butler, the global head of digital assets at BNY Mellon, and Sandy Kaul, the head of digital and industry advisory services at Franklin Templeton, have been chosen to lead this transformative initiative. With their expertise and industry experience, they are poised to shape the future of finance, benefiting clients and the broader ecosystem.
The inclusion of BNY Mellon and Franklin Templeton adds tremendous value to the Digital Assets Market Subcommittee, which already boasts a diverse membership of 128 representatives across various committees and subcommittees within the CFTC. This inclusive approach ensures a comprehensive perspective on the intricate dynamics of digital assets and capital markets.
Notably, the Digital Assets Subcommittee incorporates representatives from renowned crypto companies, such as Coinfund, Crypto.com, and Uniswap. Additionally, industry giants like BlackRock, DRW, and Goldman Sachs bring their Wall Street expertise to the table. The subcommittee’s composition reflects the convergence of traditional financial institutions and innovative blockchain-based companies, highlighting the increasing recognition of digital assets in mainstream finance.
Furthermore, the CFTC’s Global Markets Advisory Committee (GMAC) has welcomed Nadine Chakar, CEO of Securrency, and Kevin Kennedy from Nasdaq as new members. This addition strengthens the parent committee’s ability to navigate the complexities of US capital markets and oversee trading entities, exchanges, and brokers.
The CFTC’s recent approval of leveraged crypto derivatives products for the Chicago Board Options Exchange (CBOE) demonstrates its willingness to embrace innovation. However, the filings for a spot Bitcoin exchange-traded fund (ETF) submitted by CBOE on behalf of Fidelity and BlackRock were returned by the Securities and Exchange Commission (SEC) due to insufficient clarity and comprehensiveness.
Despite regulatory challenges, Sandy Kaul of Franklin Templeton expressed optimism regarding the institutional interest in digital assets. She believes that incremental institutional investments during market downturns will lay a solid foundation for the sector. Kaul anticipates that the growing retail interest, combined with this institutional floor, will fuel the next bull run in the digital asset space.
The appointment of BNY Mellon and Franklin Templeton as co-chairs of the Digital Assets Market Subcommittee signifies a crucial step toward bridging the gap between traditional finance and the emerging world of digital assets. As the landscape continues to evolve, market participants eagerly anticipate the subcommittee’s recommendations and their potential impact on the future of digital asset trading and derivatives within the United States.