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CFTC Evaluates FTX US Derivatives Trading, Opens Public Comment Period, Coinbase CEO Supports: Will Comment

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CFTC Evaluates FTX US Derivatives Trading, Opens Public Comment Period, Coinbase CEO Supports: Will Comment

The FTX.US exchange is further advancing its cryptocurrency derivatives trading market, offering the U.S. public derivatives trading without the need for futures commission merchants as intermediaries. The U.S. Commodity Futures Trading Commission (CFTC) has also initiated a public comment period. Although the outcome is unknown, it is seen as a major milestone, even prompting a congratulatory post from the CEO of Coinbase.

24/7, Intermediary-Free Derivatives Trading

The U.S. Commodity Futures Trading Commission (CFTC) announced that:

It has received an application from a derivatives clearing organization (DCO) seeking to provide margin products directly to participants, bypassing the need for futures commission merchants (FCMs) for clearing. FTX US Derivatives has applied for registration with the DCO to offer futures and options contracts in a non-intermediary model.

There will be a 30-day comment period. As reported earlier, FTX acquired the U.S. compliant derivatives exchange LedgerX in October last year and rebranded it as FTX US Derivatives, subsequently obtaining three CFTC licenses:

  • DCM (Designated Contract Market)
  • DCO (Derivatives Clearing Organization)
  • SEF (Swap Execution Facility)

The regulatory licenses enable FTX US Derivatives to offer derivative products to retail and institutional investors in the U.S. and also function as a "non-intermediary clearinghouse."

Coinbase's Support

FTX founder Samuel Bankman Fried and FTX.US President Brett Harrison both took to Twitter immediately, with SBF expressing gratitude to everyone and thanking the CFTC for providing them with a fair competitive opportunity.

Coinbase CEO Brian Armstrong also endorsed the competitor:

We will be posting comments on the CFTC website and appreciate the CFTC's assistance in achieving clarity in financial markets. Cryptocurrency can cover many things, such as currencies, commodities, securities, and even non-financial assets like NFT art, governance tokens, etc. Let's continue to make efforts for industry clarity and expand the cryptocurrency space.