CFTC to Allow Ethereum Derivatives Trading in the Near Future

Libra Coin News
Thu, 10/10/2019 - 14:26
Alex Dovbnya
The Commodity Futures Trading Commission (CFTC) is expected to green-light Ethereum futures 
Cover image via www.123rf.com

According to Yahoo! Finance, CFTC Chairman Heath Tarbert has confirmed that Ethereum is a commodity, not a security, thus mirroring the stance taken by the SEC.     

“We've been very clear on bitcoin: bitcoin is a commodity. We haven't said anything about ether—until now.”

Recently, Coinbase, Kraken and other top exchanges formed the Crypto Ratings Council (CRC) that grades digital assets based on their resemblance of a security. Ethereum scored a 2 (out of 5) due to its "decentralized development and usage". Maker, XRP and other coins that are similar to securities got more than a 4. 

Tarbert also adds that the CFTC could approve the launch of Ethereum-based derivatives (futures, options, and other beasts) in the nearest future.

As reported by U.Today, derivatives exchange LedgerX had a spat with the CFTC after it delayed the launch of physically-delivered Bitcoin futures, thus allowing Bakkt to be the first in the race. However, the regulator denied that there was any kind of personal animus involved. 

 

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.