Archive: April 3, 2023

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NFA Imposes New Compliance Obligations on Members Engaged in Digital Asset Commodity Activities

NFA Imposes New Compliance Obligations on Members Engaged in Digital Asset Commodity Activities

By Clifford C. Histed and Cheryl L. Isaac

Last week, after years of silence on the issue of digital asset regulation, the National Futures Association (“NFA”) promulgated new anti-fraud, just and equitable principles of trade, and supervision requirements on NFA Members  that engage in “digital asset commodity activities.” Compliance Rule 2-51  puts NFA Members on notice that the NFA will assert enforcement authority over any fraudulent, manipulative, or deceitful activity related to Bitcoin and Ether spot transactions, and requires that NFA Members “diligently supervise” their employees and agents in the conduct of these activities.

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