The US Commodity Futures Trading Commission (CFTC) is responsible for regulating the derivatives market. The CFTC regulates futures, swaps, and other options. As the financial markets grew, there came a need for the government to effectively monitor the them for the benefit of investors.
The CFTC, which was founded in 1975, is responsible for bringing transparency to the swaps market. Over the years, there has been fraudulent trading in futures and options, leading to calls for greater checks by the Commission.
Cryptocurrency derivatives also come under the jurisdiction of the CFTC, and its mandate is for the risk of crypto derivatives to be stated to the public. The CFTC has increased its presence in crypto over the years. In 2014, the Commission stressed that digital currencies are deemed commodities under the Commodities Exchange Act. The decentralization of cryptocurrencies pose a significant threat to the CFTC, but the Commission continues to roll out more regulatory guidelines.