New NFA Digital Asset Rule Shows Regulators On Offense

On March 29, the National Futures Association — the industrywide, self-regulatory organization for the U.S. derivatives industry — issued Compliance Rule 2-51, applicable to NFA member firms and associated persons engaging in activities involving bitcoin and ether.

The rule imposes anti-fraud, just and equitable principles of trade, and supervision requirements on members and associates, and codifies members' existing disclosure obligations under NFA Interpretative Notice 9073. The rule takes effect on May 31.