Even though the cryptocurrency industry was created to steer clear of regulators and the regulations they impose, almost every digital asset platform, in the present day is required to undergo scrutiny. The Commodity Futures Trading Commission [CFTC] is one such financial regulator that keeps several crypto platforms in check. As per the latest updates, the CFTC has given a green signal to, Bitcoin-based derivatives exchange, LedgerX to explore more than just cryptocurrencies.
Going Beyond Crypto
The United States’ based crypto platform, LedgerX LLC was granted permission to allow carry out clearing services for fully collateralized futures, options on futures as well as swaps. CFTC shared the document pertaining to the amended order of the LedgerX.
The document pointed out that LedgerX had sought an amendment to its original registration as derivatives clearing organization back in 2017. In January 2020, LedgerX further requested the CFTC to expand the product scope to futures as well as options on futures.
More recently, on 23 June 2020, LedgerX requested the elimination of the digital asset limitation. On Wednesday, the Commission shared a post on its official website affirming the approval of the same. The post further read,
“Under the amended order, LedgerX is authorized to provide clearing services for fully-collateralized futures and options on futures in addition to the previously authorized swaps, and will no longer be limited to clearing digital currency products.”
Several members of Crypto Twitter acknowledged the platform’s latest achievement and even went on to laud it. LedgerX announced the same to its community via Twitter. The tweet read,
FUTURES INCOMING: LedgerX is now licensed to clear fully-collateralized futures in addition to our existing swaps and options products. For bitcoin and more… 🚀https://t.co/MlmpaJgSEm
— LedgerX (@ledgerx) September 2, 2020
The founder and the CEO of LedgerX pointed out that the CFTC’s approval was a “major turning point” for the derivatives exchange.
Off-late several non-crypto platforms seem to have been taking an interest in crypto. More recently, the Singapore Exchange as well as the Vienna Stock Exchange extended their support towards crypto and listed Bitcoin and Ethereum. However, it seems like LedgerX intends to explore the non-crypto world.