A digital assets exchange from Chicago – ErisX – submitted a letter of comment with the Commodity Futures Trading Commission (CFTC) as the response to the CFTC the request on the Ethereum technology information.
According to the letter released on the CFTC website, ErisX stated that insufficient legal clarity sometimes restrains opportunities of the new companies (especially regulated market player) to enter the crypto segment. In this situation, the market is facing more and more unregulated or poorly regulated exchanges and brokers, with the major part holding offshore registration.
The company shared its view in the letter:
"ErisX believes that robust, transparent, regulated financial markets are critical infrastructure that enables price discovery and risk transference. These are foundational elements of well-functioning capital, commodity, and commercial markets globally. Commodity futures contracts are designed to enable risk transfer and hedging."
For reference, the CFTC issued a request last December in which it asked the public to clarify some aspects of the Ethereum platform, including the technology, features, possible applications, etc. Then the entity stressed that it “seeks to understand similarities and distinctions between certain virtual currencies, including here Ether and Bitcoin, as well as Ether-specific opportunities, challenges, and risks.”.
As the company representative noted the launch of standardized and CFTC-regulated by products based on a reliable custodial infrastructure will play into Ethereum's hands. Legal supervision will attract more participants to the market, improve pricing transparency and market liquidity, and also open up new risk management opportunities to asset holders.
Notably, ErisX is planning to launch Bitcoin, Bitcoin Cash, Litecoin, and Ethereum futures in H1 2019.