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Compliance Rules

Part 2 - Rules Governing the Business Conduct of Members Registered with the Commission


[Adopted effective May 31, 2023.]

(a) Fraud and Related Matters

No Member or Associate engaging in activities involving any digital asset commodity shall:

    (i) Cheat, defraud, or deceive, or attempt to cheat, defraud or deceive any other person involved in those activities;

    (ii) Make a communication related to a digital asset commodity that operates as a fraud or deceit; employs or is part of a high-pressure approach; or makes any statement that trading in digital asset commodities is appropriate for all persons;

    (iii) Willfully make or cause to be made a false report, or willfully enter or cause to be entered a false record in or in connection with any transaction involving a digital asset commodity;

    (iv) Disseminate, or cause to be disseminated, false or misleading information, or a knowingly inaccurate report, that affects or tends to affect the price of any digital asset commodity;

    (v) Engage in manipulative acts or practices regarding the price of any digital asset commodity; or

    (vi) Embezzle, steal, or purloin, or knowingly convert to its own use or the use of another, any money, securities, digital assets or other property received from or accruing to any person in connection with a transaction involving a digital asset commodity.

(b) Just and Equitable Principles of Trade

Members and their Associates shall observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business involving any digital asset commodity.

(c) Disclosure and Related Matters

Members engaged in activities involving digital asset commodities must comply with the applicable requirements set forth in NFA Interpretive Notice 9073 entitled Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities.

(d) Supervision

Each Member engaged in digital asset commodity activities must diligently supervise its employees and agents in the conduct of their digital asset commodity activities for or on behalf of the Member. Each Associate who has supervisory duties over a Member's digital asset commodity activities shall diligently exercise such duties in the conduct of that Associate's digital asset commodity activities for or on behalf of the Member.

(e) Scope

For purposes of this Rule, the term digital asset commodity or commodities means Bitcoin and Ether, which have related commodity interests certified by a registered entity for listing under Part 40 of CFTC Regulations.