Heath Tarbert, chairman of CFTC, believes that the cryptocurrency world will see ethereum futures contracts in the year 2020.
October 22, 2019, | AtoZ Markets – The US Commodity Futures Trading Commission (CFTC) is an independent US government agency established in 1974. That regulates US derivatives markets, which include futures, swaps, and certain options.
Ether Futures Contracts by 2020
Heath Tarbert said on the first day of DC Fintech Week that Ether futures should be seen at some point in 2020, perhaps in the next six to twelve months. However, he noted that no company took the slightest step to signal that it would launch such a product. Although he was unsure of the volumes that it could probably trade.
“I would say it’s likely you’ll see a futures contract over the next six months and the coming year. Now that we’ve given at least a little more clarity on the eligibility of ‘Ether futures contracts. I think market participants will consider this,” he added.
Read More: CFTC says Ethereum is a commodity
Ether Similar to Bitcoin
Earlier this month, Tarbert said he considered the ether a commodity, similar to bitcoin. When asked how the new contract would come into being? He answered It will depend on who needs it on their trading platform. Is it one of our existing exchanges that have been working with the CFTC for years or an entirely new platform that wants to specialize in this area? “
On the pricing of ether futures, the CFTC chairman added that traders should be reassured by using a CFTC-regulated exchange. Saying there is no manipulation market. And that markets have been providing public price transparency for the past 150 years.
Asked about other cryptocurrencies that could be added to the list, Tarbert said it is likely that we will see more. But he could not confirm that it would arrive soon. The CFTC chairman further confirmed that an asset might change from a security to a commodity, and vice versa, although he mentioned that it had never happened before, to his knowledge.
“Even the two we thought of – bitcoin and ether – took us a long time to work through.”
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