ErisX tells CFTC of "positive impact" of Ethereum futures

17 Feb, 2019
by David Robb
Regulation
ErisX tells CFTC of positive impact of Ethereum futures

The team behind crypto exchange ErisX has sent a letter to the Commodity Futures Trading Commission (CFTC), explaining the benefits of Ethereum (ETH) and how regulated ETH futures would improve the crypto market. The CFTC was requesting information about "crypto-asset mechanics and markets".

Backed by NASDAQ and other high-profile institutional investors, ErisX is a newly-launched trading platform that plans to offer BTC, LTC, and ETH derivatives. Ethereum co-founder Joseph Lubin is one of the exchange's directors.

Read more: ErisX: Crypto exchange platform hires dream team prior to launch

Responding to the CFTC's request for information, the letter from ErisX CEO Thomas Chippas including an explanation of how Ethereum differs from BTC, describing it as "akin to a cloud-based computer that can execute programs that are limited only by the imagination of developers".

The letter detailed all the benefits that standardized, CFTC-regulated ETH futures could bring to Ethereum, with a key one being "Broader participation and diversity of actors, especially institutional actors". It mentioned how investment was currently limited by "structural impediments".

These impediments could be fixed by the introduction of ETH futures, which would offer "a diversity of time horizons and trading objectives, expressed through transparent instrument pricing and trading...More robust, liquid, and resilient markets...Markets able to integrate more information, quicker, into more efficient and accurate price discovery...and Improved risk management for asset owners, market makers, and miners/validators".

Read more: What exactly is a Bitcoin future, and what will they mean for crypto?

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Read more about: Ethereum (ETH)

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