ErisX has filed a complaint with the US CFTC. They have done this in response to the agency’s feedback on ETH’s mechanics and the way that it is approaching the market. The letter has been submitted and this happened on February 15th. This sets the belief that the introduction of the regulated contract would have such a positive impact on the growth and even the maturation of the market as a whole. At the moment it is pending regulatory approval and the letter that they have issued argues that the listing and even trading of Ether futures does rely on CFYC and that this is consistent with a lot of different efforts. They are trying to offer open and competitive pricing and they are also trying to make sure that they are financially sound as much as possible.
The CFTC has determined that Bitcoin is in fact a commodity and that it also aspires to replace a lot of sovereign currencies. It is not a security, and this would bring it under the SEC’s exchange and after a very long debate, it was cleared of this classification. So was Ether, and this happened in 2018. ErisX have outlined that there is in fact a distinction between ETH and the predecessor. They have noted that Ether is built on quite a few architectural principles and that the functionality and even the fact that it is crypto-enabled and secured means that they are going to carry on functioning at a much higher level. In the diagnosis of the state, and the ETH market right now, the exchange have affirmed that the view is a lack of clarity and that a lot of regulated enterprises are now being prevented from entering the sector. This results in a preponderance of lightly regulated exchanges. On top of this, brokers are now working hard to try and fill the gap. A lot of them however are off=-shore and the risks that come with this include liquidity fluctuations, price volatility and so much more.
ThIs is in no way unique to Ether, but it really can be exacerbated by the fragmented global structure. This is especially the case when you look at trading platforms and exchanges as well. They have varying degrees of oversight and they have a ton of operational transparency too. ErisX contends that the standardised and CFTC regulated products are going to draw a much higher level of participation from the commercial users and that they are also going to work with institutional actors. This is going to result in a more resilient market that has a much more powerful level of risk management. It also helps to make sure that the price discovery is more accurate as well. ErisX this month has appointed three new veterans from YouTube, the Chicago Board and even from Barclays as well to fill some of their roles.