CFTC PROPOSAL TO OFFER DIRECT TRADE TO BTC AND ETH
"At first, there may be some doubts, [but] at the end of the conversation, there seems to be a lot of openness to what we are trying to do," said Mark Wetjen, head of policy and regulatory. The strategy at FTX US and the former CFTC commissioner, told Yahoo Finance on Friday. Wetjen was referring to the CFTC public table held in May over the FTX proposal.
"I think there is often a lot of interest and intrigue in our CFTC proposal," Wetjen said. "We believe they are of the opinion that this proposal is actually addressing a wide range of interesting issues that the CFTC has been dealing with for some time."
The cryptocurrency has proposed an automated security system that may require customers to deposit collateral and have enough money to cover the needs of the genes, which are calculated automatically. If the margin drops sharply, the default investment process will begin.
While the new system seeks to resolve differences in the output speed of the crypto verses of the current model house cleaner, some worry that it may strengthen sell-off pressures in times of market stress.
Wetjen says the automatic risk-taking feature is already in use at FTX.com, and the proposal before the CFTC will require an additional initial margin for participants before they can trade. Wetjen says less than 1% of total transaction data on the FTX trading platform comes from the automatic investment reduction to meet margin calls.
"It's a risk reduction factor and this is one of the reasons why we think the agency should be happy with this, because our model requires all customer securities to be on stage at all times," he said.
Meanwhile, Wetjen says he expects more state control of the crypto market will create more transparency and bring more investors to crypto, which eliminates the volatility.
“If that happens, it will be very clear to the investor, it will be very clear to the institutional investor, the institutional investor will be free to enter the space. All of that will lead to significant industry maturity, ”said Wetjen.