Bitcoin and Other Virtual Currencies

Today, fintech is driving innovation in financial markets across the globe. New technologies are wide-ranging in scope, from cloud computing and algorithmic trading to distributed ledgers to artificial intelligence and machine learning to network cartography, and many others. These technologies have the potential for significant or even transformational impact on CFTC-regulated markets and the agency itself. One of the most recent marketplace developments driving a lot of interest is the rise in prominence of virtual currencies, specifically bitcoin. Below are resources for market participants and customers on virtual currency and the CFTC's role in oversight of this emerging innovation.

Podcasts

Chamber of Digital Commerce

On this CFTC Talks, we bring on Chamber of Digital Commerce’s President Perianne Boring and General Counsel Amy Davine Kim to discuss the mission of the Chamber, and where they see digital assets/blockchain-based technologies are heading. 03/02/2018

Alex Rampell, General Partner at Andreessen Horowitz

On this CFTC Talks, CFTC's Dan Gorfine and Andy Busch bring on Alex Rampell of Andreessen Horowitz to lead a discussion on fintech investments. We cover a wide range of fintech issues from cryptocurrencies to blockchain (what it's not) and AI. 01/19/2018

Coincenter.org Peter Van Valkenburgh

Hear from the Coincenter.org Director of Research Peter Van Valkenburgh on this episode of CFTC Talks to learn about the key new innovation underneath bitcoin, the consensus mechanism, as well as how and why bitcoins are created. 12/29/2017

Roundtable with CFTC Leaders on Bitcoin

This episode of CFTC Talks features a roundtable made up of CFTC leaders to discuss bitcoin, the self-certification process of new contracts on bitcoin, and the CFTC role in regulating the new derivatives contracts. 12/06/2017

Daniel Gorfine, CFTC Chief Innovation Officer

We bring on Daniel Gorfine, CFTC’s Chief Innovation Officer to cover fintech virtual currencies, blockchain distributed ledger technology (DLT), and smart contracts. 11/03/2017

Customer Advisories

There’s Nothing to Like about Scammers on Social Media

Use extra caution when considering trading advice, products or services touted on social media. It’s easy for fraudsters to create a profile that hides their true identity, or use multiple profiles to promote their schemes. Find out what to look for, and how to avoid getting lured into their frauds. 07/03/2019

Use Caution When Buying Digital Coins or Tokens

The market for digital coins and tokens is still very young and there is no widely-accepted standard for placing a value on a particular coin or token. This customer advisory emphasizes the need for conducting extensive research to determine your rights, what could affect the future value of a digital coin or token, and steps you can take to avoid fraud or other problems. 07/16/2018

Beware Virtual Currency Pump-and-Dump Schemes

This customer advisory highlights virtual currency pump-and-dump schemes that occur in the largely unregulated cash market for virtual currencies and digital tokens, and typically on platforms that offer a wide array of coin pairings for traders to buy and sell. 02/15/2018

Beware of “IRS Approved” Virtual Currency IRAs

This customer advisory is designed to encourage investors to be cautious of sales pitches touting “IRS approved” or “IRA approved” virtual currency retirement accounts. Virtual currency prices sometimes experience wild price swings. This volatility is not reduced or limited just because the virtual currencies are held in an IRA. 02/02/2018

Risks of Virtual Currency Trading

This customer advisory covers virtual currency and how it is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. 12/15/2017

Primers/Backgrounders

CFTC Backgrounder on Oversight of and Approach to Virtual Currency Futures Markets

This backgrounder brings clarity to federal oversight of and jurisdiction over virtual currencies, the self-certification process, and the constituencies the CFTC believes could be impacted by virtual currency futures. 01/04/2018

A CFTC Primer on Virtual Currencies

This primer provides an overview of virtual currencies and their potential uses, helps outline the CFTC's role and oversight of virtual currencies, and cautions investors and users of the potential risks involved with virtual currencies. 10/17/2017

CFTC Backgrounder on Self-Certified Contracts for Bitcoin Products

The Chicago Mercantile Exchange Inc. (CME) and the CBOE Futures Exchange (CFE) self-certified new contracts for bitcoin futures products and the Cantor Exchange self-certified a new contract for bitcoin binary options. This backgrounder outlines the CFTC self-certification process as well as the CFTC's role in oversight of virtual currencies.

Guidance Regarding Ethics Laws and Regulations Related to Employee Holdings and Transactions in Cryptocurrencies

The CFTC's General Counsel has issued this ethics guidance to all CFTC staff regarding employee holdings and transactions in cryptocurrencies. Employees of government agencies, like the CFTC, are subject to long established laws and regulations on conflicts of interest, insider trading, and ownership restrictions of regulated assets. 02/05/2018

Brochures

Bitcoin Basics

This downloadable brochure provides basic information about what bitcoin is, what the CFTC’s jurisdiction covers, and how virtual currencies can be a target for fraud and for hackers. If you’re new to bitcoin, this guide provides an introduction and points you to more information about bitcoin and its risks.

An Introduction to Virtual Currency

This downloadable brochure is a quick guide to virtual currencies that covers how virtual currencies can be purchased, why they are considered commodities, and what types of fraud can be found in the market. Use this guide to explore the world of virtual currencies and learn about potential risks.

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