CFTC Seeks Stricter Separation of Customer Funds After FTX Fallout
• CFTC proposes new rule to segregate customer funds from derivatives clearing organizations' (DCOs) own funds, inspired by FTX collapse • Goal is to protect customer money if a DCO faces liquidity issues, preventing another FTX situation • Would prohibit DCOs from commingling customer funds with their own funds or with other clearing members' funds • Concerns raised about lack of cost-benefit analysis and comparing to existing DCO requirements • Questions around whether retail crypto investors would understand they are not considered "customers" under the proposal