The US regulatory authority has allowed exchanging market leaders CME and Cboe to sell products in the United States comply with the rules and regulations. The offering of the two has to lead the watershed for the professionals of Wall Street. The news of cryptocurrency excites the institutional investors and volatile traders. But here is the twist that all the trading should be done according to the rules of the federal government. The government has given the oversight responsibility to the Commodity Futures Trading Commission.
If you are new to the term cryptocurrency or Bitcoin, then first let me explain the term to you before proceeding.
A bitcoin is a kind of virtual currency, and it acts as a commodity exchange. Today is the age of modern technology, so there must be some modernization in the commodity exchange as well. With the new offering by the Cboe and CME now it’s become available in the market, while the monitoring of the trading is in effect. This regulatory bond makes the exchange in the future more transparent and reliable.
There is no requirement of a formal approval of CFTC for the launch of new products. However, THE CFTC does have the right to intervene if they are not satisfied. The whole procedure carry-on with a simple self-certification process.
According to the president of Cboe, Chris Concannon the new regulation will not only bring pricing equilibrium in the exchange market but also bring a regulatory watch over the trading. The struggle to regulate the swiftly emerging cryptocurrency is not new. Since the introduction of bitcoin debate has been ignited as who should be the monitory body over the rapidly spreading market.
The new market offering will be a welcome treat for the institutional investor and big giants which will take the price of the commodity high. On the introduction of this commodity, the investors and the trader got attracted to this market due to the freedom. Now with the new regulatory authority in the form of CFTC, the bitcoins trading is experiencing a significant and positive change.
As the CFTC is taking the corrective actions against the commodity trading on the other hands, the Federal Reserve has opted a somewhat cautious approach. According to the Federal Reserve, the bitcoin is not that much convincing to have any impact on the monetary policy right now. Not only this, but they are also of the view that although there are several benefits associated with the use of new technology, still we need to adopt the cautious approach while taking such innovations.
According to the analysts and the financial experts, there is a lot at stake regarding the future of the bitcoins, but there is too little coordination among the various stakeholders to implement the fair trade policy. Having some monitory body will help in gaining control over the insanely growing technology. Moreover, the use of cryptocurrency has the potential to lead the world of tomorrow all it takes is some strong hands to handle the reigns.