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Bitcoin Derivatives Exchange LedgerX Claims CFTC Treats It Unfairly

  • Alex Dovbnya
    📰 News

    The drama surrounding LedgerX and its battle with the CFTC takes a new twist with the company's CEO accusing the regulator of "personal animus"

Bitcoin Derivatives Exchange LedgerX Claims CFTC Treats It Unfairly
Cover image via news.u.today
Contents

They were supposed to be ahead of Bakkt in the Bitcoin futures race but ended up in a bizarre battle with the U.S. Commodity Futures Trading Commission (CFTC). Now, cryptocurrency derivatives exchange LedgerX doubles down on the accusations directed at the US regulator, claiming that the Chariman's "personal animous" is the reason behind the approval delay.       

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Sparring with the CFTC

According to the two letters obtained by Coindesk, LedgerX might not be in the regulator's good graces anymore simply because of a certain blog post written by the company's CEO Paul Chou. 

“We have strong reason to believe that this unreasonable delay that is in clear violation of the Commodity Exchange Act is related to the Chairman’s animus towards a blog post written by our CEO,” one of the letters states. 

While responding to these accusations, CFTC representative Michael Short emphasized that all entities are subjected to equal treatment by the regulatory watchdog. 

At the end of July, LedgerX announced that it became the first company to offer physically-settled Bitcoin futures. However, the CFTC was quick to put an end to the celebration by claiming that the upstart was yet to get the approval to offer this unique product. 

As reported by U.Today, Chou threatened to sue the CFTC for anti-competitive practices after the incident. 

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The hype might not be justified

Meanwhile, Bakkt, after numerous postponements, finally went live on Sept. 23. Despite all this hassle to gain first-mover advantage, the ICE-backed exchange has so far shown very underwhelming results. Its daily trading volume is significantly lower compared to that of CME Group, which prompted some pundits to call it a flop.

On top of that, tongues have been waggling that Bakkt's slow start might be the reason why the Bitcoin price flash-crashed to the $8,000 level.            

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
    📰 News

    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
Cover image via www.123rf.com

Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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