The Commodity Futures Trading Commission which regulates commodity market says that it is going to schedule a meeting this October to discuss its jurisdiction over Bitcoin futures. The organization says that through its Global Markets Advisory Committee, the CFTC will have a meeting with two panels, all of which will be open to the public.
According to the announcement the meeting will take place on October 9th, 2014 at the CFTC Headquarters in Washington DC and going to determine the future of Bitcoin futures in the country. The organization says that it will be the first time that it is publicly wading into the area of Bitcoin regulation.
Though there is huge demand for Bitcoin regulation from the government agencies, it is being rejected by the supporters of the digital currency as it is the unique feature. Also, there has been a growing demand for Bitcoin futures from global merchants, miners and hedge funds for an efficient hedging tool in recent months.
For instance, in March 2014, TeraExchange through an affiliate launched the first unregulated swap execution facility. Similarly, a regulated Bitcoin Derivatives and Price Index was launched in September 2014. Traditionally, underlying assets have included stocks, bonds, commodities, currencies, interest rates and market indices, etc.
Bitcoin Regulations against the DNA of Bitcoin
However, for the first time Bitcoin derivatives are being included in it and that is a concern for the market regulator. The use of Bitcoin as an underlying asset holds promise for the digital currency and wide price fluctuations have been a thorn in the side for Bitcoin. Investors have a lot of chances to lose their money and a lot of issues may appear later on.
In such a situation the requirement for Bitcoin regulation is obvious and natural; however, Bitcoin has a very prickly relationship with any regulation. A lot of this issue has to do with embedded feature i.e. it is decentralized currency and not part of the formal banking system that the world has seen so far.
There are attempts at regulating Bitcoin in the US; first one came from the Department of Financial Services in the state of New York. It came up with the BitLicenses not too long ago wherein it advocated for having control on the Bitcoin circulation; however, the Bitcoin community has shown great concern against it.
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