BREAKING: Crypto News: LedgerX wins U.S. Gov't approval after 2 years for derivatives contracts / clearing on digital currencies

3년 전

TLDR:


LedgerX is a Bitcoin Options Exchange. The US Gov't has granted it the 1st license to clear & settle digital currency contracts/derivatives.

They were also granted a license to operate as a swap execution facility early this month.

The U.S. Commodity Futures Commission is the agency involved here:



This license took 2+ years to win approval on, partly because of a long education process, said the company CEO Paul Chou - as well as needing to secure $11.4 million in funding



Screen captures from the Reuters News article released.... I have included the transcript there for you in writing below also if you cannot see them well.

This news is being under reported or at least noticed, IMHO. There are a lot of legit news sources discussing this.


Why is Mainstream Media Crypto coverage important?


We are seeing more and more "mainstream media reporting on Crypto Currency and Blockchain news.

This is key for mass adoption and for the more statist news consumers to get this on their radar as they see mainstream media as legit sources of info, as sad as it is to say that, as we know in the Liberty space.





Unedited Content from Reuters:


NEW YORK (Reuters) - The U.S. Commodity Futures Commission said on Monday it has granted New York-based LedgerX, a bitcoin options exchange, the first license to clear and settle derivative contracts for digital currencies.

The license authorizes LedgerX to provide clearing services for fully collateralized digital currency swaps. LedgerX, which was also granted a license to operate as a swap execution facility early this month, initially plans to clear bitcoin options, the CFTC said in a statement.

The CFTC, however, also clarified in its statement that the approval of LedgerX's license "does not constitute or imply a commission endorsement of the use of digital currency generally, or bitcoin specifically."

With the settlement and clearing license, participants in the LedgerX trading platform will be able to hedge bitcoin and other digital currencies using exchange-traded and centrally cleared option contracts. Initially, LedgerX expects to list one- to six-month options contracts for bitcoin. Other digital currency contracts such as ethereum (ETH) options are expected to follow.

Ethereum is another online public ledger much like bitcoin, but with self-executing transactions.

"Having a regulated clearing house will open the market to a lot of other investors such as the large institutions," said Paul Chou, chief executive officer of LedgerX, in an interview.

"A proper regulatory framework will open up the market and make them comfortable."

The license took more than two years to win approval partly because of a long education process, said Chou, who also sits on the CFTC's Technology Advisory Committee.

To get the clearing license, LedgerX secured $11.4 million in funding in May led by Miami International Holdings Inc and China's Huiyin Blockchain Venture Investments.

"We are seeing strong demand from institutions that previously could not participate in the bitcoin market due to compliance restrictions against unregulated venues," said Chou.

He said fund managers want to hold financial instruments that are not correlated with the broader equity market, and digital currencies meet that need.

Founded in 2013, LedgerX first received a temporary approval to operate as a swap execution facility in 2015.


More Reading:

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http://www.cnbc.com/2017/07/24/you-may-soon-be-able-to-trade-options-on-bitcoin-ethereum.html

http://fortune.com/2017/07/25/ledgerx-short-bitcoin-cryptocurrency/

http://www.itproportal.com/news/ledgerx-will-be-first-us-federally-regulated-cryptocurrency/

http://www.marketwatch.com/story/bitcoin-platform-scores-key-greenlight-from-wall-street-regulator-2017-07-24




Thanks for reading, have a nice day.




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I've got mixed feelings about this, i still remember some bad things about derivatives markets from circa 2008, while I know short to mid term it will be good for the cryptoverse, I still cant help but think there's gonna be even more market manipulation in the coming years!!!

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Yeah, this will bring out even more market manipulation...even more Hardforks and rumors of forks.

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I have mixed feelings on anything the gov't gets their grubby hands on since they need to get into everything and then screw it up, it is what they do best

Hehe everyone keeps telling me America is going ban cryptocurrency blab la bla. No, they just want make sure they can tax you to death on it. They could care less amount things if they are getting there cut. It’s like the mafia and they want their money.

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You are right. I try and tell Bob the Statist this all the time but he just loves his gov't and making excuses for them and their corrupt behaviour dude.

I have mixed feelings on anything the gov't gets their grubby hands on since they need to get into everything and then screw it up, it is what they do best

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Yep great example was the paved road they put in we use to be dirt road. They had a crew of 10 or so people and only 2 ever worked at a time. Other 8 just stood there out in the heat talking with each other about what they were going do on the weekends.

I went to a community college a few years back. First few classes were just filled with people exploiting the system. Getting 100% free ride from the government on top of that paid housing expensive, and I can only assume they also were being paid for showing up. You could tell because they never bought a textbook, dint have a backpack, and had to always ask to “borrow” writing utilize that they never returned. Most time they showed up last to class chatting on their cellphones and. Anything they dint spend from federal funding they got to keep.

To many people exploiting and robbing us blind. I’m all for helping people who are down on their luck needing a helping hand so they can get back on their feet. However, far to many are just happy not getting back up. Why I don’t trust them with a cent because they get robbed blind daily.

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Frick this is stuff me and @clayborn discuss all the time.

I like you @enjar.

Right from day one.

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Couple little UV for you again buddy.

I likes your style son

LOL

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Now you have done it! Ding rep level 49. I just heard BTC-E exchange went down due to someone being arrested. I can't believe I moved funds from there the other week. Might have just dodged a bullet.

Interesting.... Can't wait to shoot towards the moon! I wonder what Veritasium thinks about all this. Each day just gets more and more exciting!

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Every day is a big day, you are right Jose.

This is pretty crazy stuff. I was expecting them all to be denied after the winklovos one got denied. Can't wait to see where we go from here!

Maybe a fang of the banks getting into the fleshy underside ready to start squeezing its host if it gets to big. Good thing or bad thing? Not sure.
But the banks have took notice awhile back.

Amazing how the chumps think they can control everything,

great news...thanks for update

This certainly is a definitive step towards wider cryptocurrency acceptance. Certainly this should help the crypto world become more mature and hopefully the pricing would become more stable over time. When Govt.s take a positive stand like this it generally sends positive signals and opens doors for more and wider acceptance of cryptocurrencies. The ramifications would be far and wide. certainly a good news not just for Bitcoin but other crypto's as well

Sounds good Barry!

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BarryDutton Barry Dutton tweeted @ 26 Jul 2017 - 16:21 UTC

BREAKING: #Crypto #News: U.S. Gov't approval granted on: #CryptoCurrency #Bitcoin #Derivatives etc. $BTC $XBT #Steem
bit.ly/2uxyf8J

Disclaimer: I am just a bot trying to be helpful.

Interesting. Incoming heavier regulation.

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Tagged you above in a post reply with @enjar buddy

Would you be able to break that down into a simpler version for us noobs here? even just a cppl words basically. I think I get a basic understanding but its kind of confusing tbh

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Big Gov't which is useless and greedy, wants their cut of the crypto market of course.

So they have agencies like this, "regulating" things -- meaning monitoring and taxing, and legislating their way into the latest thing they can, to get their cut.

Government = Lies, Sociopaths, manufactured and forced consent -- like everything else.

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aaa gotcha... yeah i kinda believe along those lines aswell. Thanks Barry

Great article. Thanks for sharing the good news!
GO CRYPTO-GO!!