CFTC Authority

Definition ∞ CFTC Authority denotes the legal jurisdiction of the U.S. Commodity Futures Trading Commission over certain financial instruments. This power allows the agency to regulate derivatives markets, including some digital assets classified as commodities. The scope of CFTC authority impacts how various cryptocurrencies are supervised, influencing market integrity and participant protections.
Context ∞ The classification of digital assets as commodities versus securities remains a significant regulatory discussion, directly affecting the extent of CFTC authority. This ongoing debate shapes the legal framework for digital asset markets, determining which regulatory body holds primary oversight. Clarity in this area is paramount for market participants seeking legal certainty and compliance guidelines.