Comment Text:
The proposal is dangerous and foolhardy. Cryptocurrencies and blockchain technologies are unstable, under-regulated assets with troubling environmental costs and are rife with abuse.
Frauds and scams are rampant.
In particular, FTX chief Sam Bankman-Fried has directly admitted that the practice of "yield-farming" crypto assets traded on his platform is a Ponzi scheme.
As Gavin Lucas writes: "Despite acknowledging that it’s unclear whether these tokens should have any market cap, Bankman-Fried is happy to sell them on his FTX exchange."
Please see the attached article by Gavin Lucas for more.
It would be an act of unconscionable dereliction for the CFTC to open more retail consumers to the deliberate predatory practices of FTX.
The mission of the CFTC is to "promote the integrity, resilience, and vibrancy of the U.S. derivatives markets." Accepting a direct clearing model for crypto exchanges such as FTX would do the exact opposite in every respect.
