In the words of Rostin Behnam, “This is a unique intersection of the crypto space and traditional finance. I think this is potentially – and I emphasize the ‘potential’ – another phase in the evolution of market structure, innovation and disruption”
Earlier this year, crypto exchange FTX submitted a proposal to allow investors to directly place leveraged bets on Bitcoin. If it gains approval from the CFTC, clients will be able to trade derivatives via FTX without requiring a broker.
Since then, FTX’s idea has received mixed responses from the financial industry, with many citing that accepting the proposal will increase the market risks.
However, Rostin Behnam, CFTC’s Chairman, claimed he was impressed with FTX’s idea at the Financial Markets Quality Conference.
He compared this proposal to the commodity industry’s transition to a digital system in the 1990s. He added the proposal can potentially cause an evolution in the way markets operate.
Despite praising FTX's bold idea, Behnam did not disclose how the CFTC may respond to it.
FTX US Derivatives’ CEO remarked that the exchange’s application process is proceeding smoothly. He added the proposal will make it easier for individual investors to trade crypto-futures.
