Crypto trading outfit ErisX has issued a letter in response to the US Commodity Futures Trading Commission’s request for information on Ethereum.
“We believe that robust, transparent and regulated financial markets are critical infrastructure that enable price discovery, risk transference and hedging opportunities. These are foundational elements of well functioning capital, commodity, and commercial markets globally. In 2014, the CFTC declared virtual currencies to be a “commodity” subject to oversight pursuant to its authority under the Commodity Exchange Act (CEA),” it says.
The Ethereum network will continue to evolve and Ether will benefit from Commodity Futures Trading Commission (CFTC) -regulated futures contracts, as is the case with other cash commodities markets, it adds.
Ethereum has real functionality and use cases, with many people, firms and governments beginning to use the network, the letter argues. “The structure of the Ether market has many similarities with existing commodity markets and we believe the precedents and standards already in existence for those markets can be applied to Ether. Finally, we see this as an opportunity for the CFTC to continue supporting innovation in the futures markets,” it concludes.
Big guns
Earlier this month, we reported that ErisX had added three new staff members: Robert Thrash, Chief Operating Officer, Arnold Connell, Head of Infrastructure and John Denza, Business Development Executive.
ErisX (a reboot of traditional futures market Eris Exchange, which is set to begin support for spot trading in various cryptos) has assembled an impressive team of experts to build the most robust, secure and regulated digital asset platform,” said Thrash. “Leveraging intermediary relationships and their diverse group of investors, ErisX will help both institutional and individual participants access these markets.”
Also of interest: Ethereum Co-Founder Joseph Lubin joins ErisX board
Thrash spent the past 12 years at Barclays Investment Bank, most recently as Managing Director and Global Head of Futures Execution Services and Clearing Platform Management. Connell was previously at YouTube where he was one of the original creators of YouTubeTV.  He also spent nine years at Google in various roles.
Denza, meanwhile, was most recently Director, Head of US Sales at Pico Quantitative Trading. He also spent 10 years at BATS Global Markets/CBOE leaving as Director, US Sales Equities and Derivatives.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.