Ethereum [ETH] might have to wait a little more before it could launch ETH futures. Last year, Bitcoin futures send a happy wave among the crypto community and the speculations of Ethereum futures launch gained momentum following this development.
In June this year, the United States Securities and Exchange Commission [SEC] declared that Ethereum is not a security, which cleared the way for ETH futures. This news brought joy for many crypto enthusiasts. However, this was short-lived as the Commodities Futures Trading Commission [CFTC] indicated that it has some more fundamental issues with Ethereum, the third-largest cryptocurrency in the market.
After the launch of Bitcoin futures, it was known that the Chicago Board Options Exchange [CBOE], the platform that launched Bitcoin futures, was awaiting approval from the Commodities Futures Trading Commission [CFTC] to initiate Ethereum options by the end of 2018. The CBOE will base ETH contracts on the Gemini, a cryptocurrency exchange market. CBOE has already based Bitcoin futures on Gemini.
However, the CFTC has put everything on halt. The commission that regulates derivatives said that it is planning to seek the feedback of people on Ether, in order to understand the similarity and the differences between Ethereum and Bitcoin, reported Bloomberg. CFTC has listed a few questions it has about the third largest cryptocurrency:
- How do the functionalities and capabilities of Ether and the Ethereum Network differ from those of Bitcoin?
- How is the technology underlying Ethereum different from technology underlying Bitcoin?
- How is the governance of the Ethereum Network similar to that of the Bitcoin network?
- How could trading derivatives on Ether impact the underlying currency and the Ethereum Network?
However, traders are made to believe that exchanges would start offering Ethereum futures, after SEC’s division of corporation finance’s, William Hinman, six months ago, said that he did not believe cryptocurrencies in its current state was a security that his agency had jurisdiction over.
To this, CBOE Global Markets Inc. President, Chris Concannon, had responded saying that the announcement by Hinman cleared a “key stumbling block for Ether futures”.
However, CFTC cleared the air about Hinman’s statement and said that the comment he made was his “personal view”.
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