CFTC Appoints New Digital Assets Panel
• The CFTC has appointed Caroline Butler of BNY Mellon and Sandy Kaul of Franklin Templeton as co-chairs of its new Digital Assets Market Subcommittee.
• The two executives are committed to playing a leadership role in shaping the future of finance.
• Institutional investment is expected to form a strong foundation for the digital asset space.
CFTC Establishes New Digital Assets Market Subcommittee
The Commodity Futures Trading Commission (CFTC) recently announced that it has appointed top executives from two prominent financial institutions, Caroline Butler from BNY Mellon and Sandy Kaul from Franklin Templeton, to serve as co-chairs of its new Digital Assets Market Subcommittee.
Caroline Butler, who serves as the global head of digital assets at banking titan BNY Mellon, expressed commitment to “playing a leadership role in shaping the future of finance” in her statement on the news. Meanwhile, Sandy Kaul, head of digital and industry advisory services at investment firm Franklin Templeton, predicted that institutional investments will form a strong foundation for the digital asset space during an interview with Scott Melker.
CBOE Approved For Leveraged Crypto Derivatives Products
In addition to this appointment announcement, last month saw the CFTC approve leveraged crypto derivatives products for Chicago Board Options Exchange (CBOE), which had previously filed a bid on behalf of financial services giant Fidelity to create a spot Bitcoin (BTC) exchange-traded fund (ETF). However, this filing was returned by the SEC due to being unclear and incomprehensive.
Institutional Investment Expected To Form Foundation Of Digital Asset Space
Kaul believes that institutional interest will continue building gradually over time until it forms a strong foundation for markets when retail interest starts again during another bull run. He stated: “I think that you’re starting to see that institutional interest. I think that they will come in each time the market falls and put a little bit more on and a little bit more on, and over time that will start to create a good foundation for the markets.”
In conclusion, while there have been some setbacks in terms of ETF filings being rejected by regulators such as SEC due to lack clarity or comprehensiveness; there is still progress being made towards establishing stronger foundations for spurring growth within digital asset markets with major players like BNY Mellon and Franklin Templeton taking charge through initiatives such as establishing panels like CFTC’s new Digital Assets Market Subcommittee headed by both their representatives.