Regulators In The US Could Eventually Approve Ethereum Futures According To CFTC Sources
The U.S. Commodity Futures Trading Commission (CFTC) could eventually approve Ether (ETH) futures contract. The information was released a few hours ago by ConDesk citing inside sources.
Regulators Could Approve ETH Futures Contracts
The CFTC is one of the regulatory agencies in the United States and oversees derivatives markets in the country. Back in 2017, it gave the green light for the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) to launch Bitcoin (BTC) futures.
The regulator seems open to approving a similar product for Ether, the second largest cryptocurrency in the market in terms of market capitalization after Bitcoin.
On the matter, the person from the CFTC commented during a conversation with CoinDesk:
“I think we can get comfortable with an ether derivative being under our jurisdiction. We don’t do bold pronouncements, what we do is we look at applications before us.”
According to the report released by CoinDesk, a CFTC-supervised futures market could increase confidence among regulators and play an important role in the approval of a Bitcoin Exchange Traded Fund (ETF). Many of these ETFs were rejected in 2018, even when the market was expecting for the approval of at least one of these ETFs.
Moreover, the regulatory agency informed that it was looking at Ethereum back in December when the regulator published a “Request for Input” in which individuals could provide answers to several questions regarding Ethereum. The main intention is to help the regulator understand “the range of issues that might exist” around this digital asset.
35 comments were submitted to the regulatory agency and several individuals and firms provided information about Ethereum including Craig Wright, Coinbase, Blockchains LLC, Circle, and many others.
Amy Davine Kim, the chief policy officer at the Chamber of Digital Commerce, explained that the regulator has enforcement jurisdiction over the spot market “after-the-fact.” Moreover, those assets that are not considered securities are broadly defined as a commodity.
Thus, if the CFTC approves Ether futures, it will be very positive for the digital currency and the crypto space. It will legitimize the space and it will also have an important impact on other regulatory agencies such as the CFTC.