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US SEC and CFTC’s eagle eye on crypto-derivatives, Duos to work jointly to keep regulatory frameworks more conducive and effective

We keep reiterating that Cryptocurrency derivatives trading has been the center of attraction in the recent past. Cryptocurrency derivatives, including cryptocurrency futures, cryptocurrency CFDs, ETFs, and cryptocurrency options) have been under the meticulous scanner of the renowned global regulators of-late, such as the US SEC, CFTC and UK’s Financial Conduct Authority (FCA).

The market for derivatives is massive. For example, in 2017, the notional number of outstanding derivatives contracts was approximately $542 trillion. Investors, market makers, and other financial players routinely enter into these contracts, in order to hedge risks or make a profit.

The two US market regulators – the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission) expressed their standpoints on the Bitcoin futures and ETFs.

The SEC’s standpoint on Bitcoin ETF’s seems to constructive for crypto-aspirants, as the SEC Commissioner Hester Peirce, who is also known as ‘Crypto Mom’, revealed that it is unlikely to rule out a bitcoin ETF approval.

While on the flip side, Brian Quintenz, the CFTC Commissioner expressed his stances on Bitcoin futures: “We have a process in the Commodity Exchange Act that allows the exchanges to self-certify a contract if they believe it meets the requirements of the Act.”

Though Bitcoin and Ethereum fall under the CFTC’s purview, the SEC is still controlling the larger initial coin offering (ICO) market. Ant the SEC cites that all Initial Coin Offerings (ICOs) should be regulated as securities but when asked if they will ban or regulate the market, an SEC commissioner made it clear he was not suggesting either option.

Peirce stated that the crypto-space is quite perplexing and hinted the collaborative intentions between the CFTC and the SEC.“This is an area where I think Brian and I are interested in working together”, Pierce added while illustrating the prevailing regulatory frameworks that are withstanding on cryptocurrency turbulence.

Bitcoin futures were made available during late 2017 by CME, such instruments have been available for trading on the CBOE Futures Exchange, LLC (CFE) as well. The trading in CBOE bitcoin futures has been unveiled by CFE under the ticker symbol "XBT" (contract specifications fact sheet.

The robust and clear regulatory framework in place facilitates numerous benefits to the traders, such as, efficient price discovery, deep liquidity. transparency, and centralized clearing. XBTfutures provides a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions.

Furthermore, from the better clarity in the regulative documents, the guided crypto operators with a view of shedding some light as to how the regulatory transparency in the gamut of crypto participation could be met. 

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 167 levels (which is bullish), while hourly USD spot index was at -54 (bearish) while articulating (at 09:43 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex

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