FTX (crypto exchange) is now looking to get regulatory approval for allowing cryptocurrency derivates trading on its platform. If the exchange manages to get the regulatory approval, it will also open doors for more oversight of this particular business in the USA.
According to CFTC, they are currently looking at the FTX US's application for offering margin trading of cryptocurrency derivates. If the company actually gets approval from the CFTC, it will put it ahead of the other financial companies that are facilitating such types of trades.
For now, there is no official federal oversight when it comes to the crypto exchanges operating in the USA. But according to Sam Bankman-Fried (CEO of FTX), this move will bring their platform under the regulatory agency and will also boost the investor's confidence.
Brett Harrison, who is the head of FTX US operations, also called for proper government regulation in the crypto space. According to him, it is very important to ensure that the space is properly regulated, especially in the USA - This will help in the eradication of a lot of bad actors from the cryptosystem, which is bringing a lot of risk for the clients as well as the industry.
Harrison believes that a proper regulatory framework will push crypto into a more mature and regulated industry.
Despite the FTX's wish for a regulatory proposal, there are several clearing houses that are totally against what the FTX is proposing. One of those clearing houses is the CME Group or also known as CME.O, which goes to show that big players are present on the other side as well!
It has been years since the boom of crypto markets, and the global regulators have yet to find a way to regulate this chaotic and wild market. And the fact it is gaining a lot more attention among the masses tells us that proper regulatory insight is the need of the hour!