The Great Bitcoin Futures Mix-Up
Earlier this week, the crypto universe was buzzing with the news that LedgerX, a U.S. regulated crypto derivatives platform, had launched the first physically settled Bitcoin futures contracts. It sounded like a grand slam for the company—getting ahead of competitors like Bakkt and ErisX. However, the hype quickly deflated when the Americas’ Commodity Futures Trading Commission (CFTC) chimed in, saying the reports were exaggerated and that LedgerX wasn’t properly cleared to do so. It was a classic case of ‘you say potato, I say potato,’ except in this case, the potato was worth millions.
Who Said What?
To add more spice to this already confusing pie, LedgerX officials claimed that the media had misunderstood the launch details, particularly CoinDesk, the publication that broke the story. An anonymous LedgerX insider declared, “We launched Omni, they just misunderstood the scope of the launch.” So, to clarify, they launched a trading platform, but the futures? Those are still in the oven.
What’s Cooking on the Omni Platform?
LedgerX’s Omni trading platform allows users to deal in Bitcoin, options, and swaps, but—hold your horses—no futures yet. This was made clear in one of their attempts at damage control where a post declared, “retail + options + swaps, though it got picked up as being launched with futures.” Just imagine trying to sell hot cakes but forgetting the main ingredient.
What’s the Deal with the CFTC?
Despite LedgerX’s desire to launch Bitcoin futures, they still await the coveted DCO amendment from the CFTC. Officially, LedgerX can only clear swaps, not futures—an unfortunate roadblock that’s dampened their plans. The CFTC stated, “The absence of a decision does not constitute approval.” So it seems, LedgerX has all the ingredients but is missing the secret sauce that allows them to serve futures to hungry traders.
Legal Threats and Industry Reactions
Amidst the chaos, LedgerX CEO Paul Chou has expressed a desire to take legal action against the CFTC for “anti-competitive behavior.” This decision has sparked a wildfire of reactions from industry insiders questioning the government’s sluggishness in handling crypto regulations. It highlights a larger issue: How can crypto businesses thrive amid regulation that resembles a snail’s pace?
The Importance of Physically Settled Bitcoin Futures
Physically settled futures would allow investors to actually receive Bitcoin rather than cash. As Martin Weiss noted, if you want actual Bitcoin for that price you locked in, futures would make your life a whole lot easier, especially during volatile market phases. But alas, the crypto community is still waiting for these futures to become a reality in the U.S.
Final Thoughts: The Slow Road Ahead
The saga of LedgerX seems to epitomize the struggle between crypto enterprises and regulation in the U.S. While waiting for the green light from the CFTC, LedgerX not only faces regulatory hurdles but now the headache of public perception. Will they ultimately triumph and start trading physically settled futures? Only time will tell.
+ There are no comments
Add yours