Shipkevich Bitcoin and ICO Attorney
Felix Shipkevich June 22, 2012
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The CFTC canceled its Thursday meeting where it had been expected to issue guidance on the cross-border application of Dodd-Frank swap rules. It is unclear when the agency will unveil its vision for this hotly contested area of the law, but sources say that Commissioners may opt to vote privately on the issue in the next few days.

Industry groups have criticized the cross-border application of Dodd-Frank swap rules, saying that it will prevent them from successfully competing with foreign banks. Regulators, however, insist that it is necessary in order to prevent exposure taken on by overseas affiliates from causing a chain reaction that in the U.S.

“Modern finance has shown us time and time again that those risks keep crashing back here when there is a problem,” CFTC Chairman Gary Gensler said in an interview.

A top European regulator is criticizing the CFTC’s stance on the issue. Writing in the Financial Times, European Commissioner for Internal Market and Services Michel Barnier called for the U.S. to define “U.S. person” narrowly for the purposes of swap regulation, and thereby limit the global reach of Dodd-Frank.

Read more about the delay.

Photo credit: FutUndBeidl