The US Commodity Futures Trading Commission (CFTC) announced that LedgerX has officially been granted status as a Swap Execution Facility (SEF).This move had shocked and surprised many in the cryptocurrency and Bitcoin world.
Ledger X is now the first federally recognized exchange able to trade Bitcoin options. But this is not yet finalized.
The final step to this major achievement is getting approved from the CFTC as a Derivatives Clearing Organization (DCO).
Once CFTC grants the approval , LedgerX will be the “first federally regulated Bitcoin options exchange and clearinghouse to list and clear fully-collateralized, physically-settled Bitcoin options for the institutional market.”
Only 25 financial groups have SEF status including Bloomberg and Chicago Mercantile Exchange. Ledger X is now among this rare group.
People argue that interference from government organization weather positively or negatively challenges the decentralize nature. But growing popularity of cryptocurrencies worldwide forced the government to interfere. In some cases like Japan, it overall creates a positive environment for the digital currencies like Bitcoin.
Therefore greater levels of regulation is needed by the government in order to provide the necessary stability to attract institutional investors and High Networth Indidviduals.
In the past, Bitcoin Exchange Traded Fund (ETF) was also proposed to US Securities and Exchange Commission.
Two applications were filed, both of which were rejected by US SEC.
Although, a few weeks ago, a news came in where US Securities and Exchange commission announced that it will reconsider the Bitcoin ETF application. This announcement hugely escalated prices of Bitcoin.
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
