An Ethereum Futures Future? U.S. Commodities Giants Lie In Wait After SEC Surprise
Chicago-based commodities #giants Cboe and CME Group are exploring the ethereum cryptocurrency with a $49.6 billion market value in a number of different ways. The problem is, until last week, U.S. regulatory uncertainty was preventing them from taking one crucial step. While ethereum futures contracts that let owners bet for and against the cryptocurrency are already trading in the U.K., doubts about whether the U.S. #Securities and Exchange Commission (SEC) would classify ethereum as a security was a concern to both #exchanges and to many others in the industry.
Both #Cboe and #CME Group have been trading bitcoin futures since last year, following guidance that classified bitcoin as a commodity and left it squarely in the Chicago giants' domain. But with the distinct chance that ether, which had early on been purchased by a relatively small group of people, might be deemed a security, the companies were among countless others that were slowly building related products in the background, while waiting for additional clarity.
Then, on stage last week, #SEC director William Hinman spoke ten magic words that brought that clarity and have sent much of the cryptocurrency world into a tizzy: “Current offers and sales of ether are not securities transactions.”
Cboe president Chris Concannon was on a flight from #Chicago when he heard the news and tells Forbes the first thing he did was call his director of communications to prepare for a deluge of requests from the media. The moment he and his team had been waiting for had finally happened, and it was time to act.
“We have been contemplating futures on ethereum for sometime,” Concannon told #Forbes . “This clearly makes the complexity of ether potentially being a security go away, and it certainly clears a path for launching a #future on #ether .”
#residualincome #rich #invest #finance #money #crypto #bitcoin #ethereum #startup #cryptocurrency #stock #blockchain #financialfreedom #fintech