United States of America: Issued CTFC advisory on the risks associated with the expansion of Derivatives Clearing Organisation (DCO) clearing of digital assets

On 30 May 2023, the Commodity Futures Trading Commission (CTFC) issued guidance regarding the risks involved in the expansion of Derivatives Clearing Organisation (DCO) clearing of digital assets. The guidance was published in response to the growing interest in expanding the range of cleared products, business lines, clearing models, and services offered by DCO, particularly in relation to digital assets. The guidance specifically highlights the increased cyber and other risks associated with digital assets and emphasizes the CTFC's focus on DCO applicants and registrants complying with the DCO Core principles related to system safeguards, conflicts of interest, and physical delivery.