Definition ∞ CFTC Core Principles are foundational regulatory standards established by the Commodity Futures Trading Commission for designated contract markets and derivatives clearing organizations. These principles aim to safeguard market integrity, promote financial stability, and ensure customer protection within the derivatives sector. They encompass requirements related to governance, risk management, trade execution, and dispute resolution. Adherence to these principles is essential for regulated entities operating in US derivatives markets.
Context ∞ The application of CFTC Core Principles to the rapidly evolving digital asset derivatives market remains a central point of regulatory discussion and legislative initiative. Debates concern how existing regulatory frameworks can effectively adapt to novel technologies and new market structures. Observing legislative proposals and enforcement actions provides critical insight into the future trajectory of digital asset regulation.