Category Archives: Ethereum futures

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CFTC Chairman Says Ethereum Futures Expected in 6-12 Months

Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert recently declared that Ethereum is a commodity, and is now saying that he expects officially regulated Ethereum futures to launch in the United States within the next 6-12 months.

The reason that the CFTC considers Ethereum a commodity is that it is sufficiently decentralized, and there is no longer a centralized company in charge of Ethereum who is selling coins to investors who expect profit. This puts Ethereum under CFTC jurisdiction and therefore eligible for having a futures market in the United States, unlike many other cryptocurrencies that are considered securities and fall under Securities and Exchange Commission (SEC) jurisdiction.

In general, the CFTC seems to be more willing to working with the crypto space than the SEC, as shown by the CFTC approving two different Bitcoin futures exchanges, while the SEC has not allowed any crypto exchange-traded funds (ETFs) nor any officially approved initial coin offerings (ICOs).

That being said, Tarbert says the CFTC is investigating whether Ethereum’s planned transition to Proof of Stake (PoS) will impact its classification as a commodity. In general, Tarbert believes that PoS is more decentralized than Proof of Work (PoW). However, the details about Ethereum’s transition to PoS are not finalized yet, and the transition may not happen for months, so the CFTC cannot make a decision yet.

 

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Ethereum

US CFTC Chairman Declares ETH as Commodity

Ethereum

In a new development, the US Commodities and Futures Trading Commission (CFTC) chairman Heath Tarbert has announced that Ether is a commodity and not a security thus paving way for the launch of the first Ether Futures contracts. He was speaking to the Yahoo! Finance All Markets Summit on Thursday.

The security-commodity debate has been ongoing for a long time and there has been a broad consensus between the Securities and Exchange Commission (SEC) and CFTC on this that Bitcoin and other popular cryptocurrencies are commodities and not securities.

According to CFTC chairman Tarbert:

“We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether – until now….., It is my view as chairman of the CFTC that ether is a commodity.”

There has been some positive news regarding this in the previous months as a senior official once went on record to say that the CFTC was allowing Ether to be considered a commodity.

It is not yet clear how this will benefit the crypto world as Bitcoin Futures itself has not yet become a lucrative investment option in the futures market as of right now despite being the premier cryptocurrency of the world. It remains to be seen how an ETH-futures contract is received by the community especially considering the fact that the ETH has no hard limit on the maximum number of coins created.

Tarbert discussed a wide range of topics during the panel including Facebook’s stable coin project Libra.

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