Proposed Ethereum Futures Might Need To Hit Pause Button As CFTC Is Not Finalized Its Review
As the bear run continues, ETH and other major crypto coins are still in the red and there are no signs of letting up. In the past 24 hours, ETH has dipped about 3.25%. It is trading at about $89 with a market cap of about $9.24 billion. In the same period, it had a trading volume of about $1.72 billion.
No Good News Yet
Those that might have been expecting some good news on ETH might have to wait a bit longer. ETH will need to wait longer if it is to launch its ETH features. Last year, BTC futures were launched and this sent a positive vibe throughout the crypto world. Speculation about ETH futures was rife and everyone expected a launch to happen soon.
In June 2018, the US Securities and Exchange Commission declared that ETH was not a security, which was a good sign. It meant that ETH futures could launch soon. This put a smile on the faces of many in the crypto community. However, this joy was short-lived. The Commodities Futures Trading Commission made it clear that it had issues with ETH. This is despite the fact that it is the third largest crypto by market cap.
After BTC futures were launched, the CBOE, which is the platform that launched the BTC futures was waiting for approval from the CFTC to launch its ETH futures. This was to happen by the end of 2018. The CBOE planned to base these ETH contracts on Gemini, which is a crypto exchange. CBOE already based the BTC futures on Gemini.
CFTC Puts The Break On All Plans
Despite this meticulous planning, the CFTC has halted any plans for the launch of ETH futures. The commission says that it is planning to get feedback from those on Ether. This way, it will be able to understand how ETH and BTC are similar and different. CFTC has some pressing questions it wants to be answered on ETH.
For one, it wants to understand how the capabilities and functionalities of Ether and Ethereum are different from those of the BTC.
It also wants to know how the underlying technology for Ethereum differs from that of the BTC.
The CFTC also wants to understand how the governance structure for BTC is similar to that of ETH.
Lastly, the CFTC needs to understand how trading derivatives on Ether might impact the Ethereum Network and the underlying currency.
There Is Hope
Traders still hope that exchanges will begin to offer Ethereum futures soon. This is especially so after the division of corporation finances at the SEC, William Hinman said that he did not think crypto was a security. Thus, in its current form, he did not believe his agency had jurisdiction over them.
When this happened, the President of CBOE, Chris Concannon said that this was a major obstacle for Ether futures. However, the SEC has since declared that the statement by Hinman was his personal view.