The U.S. Commodity Futures Trading Commission (CFTC) said it would allow the CME and CBOE, two major Chicago exchanges, to launch bitcoin futures. This weeks announcement paves the way for a huge step in the evolution of the digital currency, making trading bitcoin easier for Wall Street banks and small investors alike.
“Market participants should take note that the relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority,” he said in a statement. “There are concerns about the price volatility and trading practices of participants in these markets.” CME and Cboe used “self-certification,” declaring to the CFTC that the new contracts are in accordance with relevant laws and regulations. The agency has the power to block a self-certified contract, but otherwise it goes forward.