After launching futures contracts tied to bitcoin and ether lately, CME Group is whether or not it could introduce futures based mostly on cryptocurrencies with smaller market caps, together with Solana’s SOL and Cardano’s ADA.
The Chicago-based alternate is “” creating altcoin futures contracts given important shopper requests, Payal Shah, CME’s director of fairness and cryptocurrency merchandise, said as a part of a panel dialogue at CryptoCompare’s Digital Asset Summit in London on Wednesday.
Shah, nonetheless, acknowledged that launching altcoin futures will rely upon checking out points associated to cost indexes and regulation. In line with Shah, the CME’s present bitcoin and ether futures rely upon indexes based mostly on value feeds from 5 exchanges.
“By way of the opposite cash outdoors bitcoin and ether, we want firstly an index or we want the flexibility to create an index,” she added.
With regards to regulation, Shah identified the present lack of regulatory certainty for altcoins in the US. “We have to know the place to ship the paperwork,” Shah acknowledged, referring to the shortage of readability about which US regulatory company may have jurisdiction over altcoin-related devices.
Bitcoin and ether are the one cryptos up to now deemed to be non-securities by the US Securities and Trade Fee (SEC). In the meantime, the SEC has beforehand acknowledged that many altcoins are securities.
Since launching bitcoin futures in December 2017, the CME has launched choices and futures contracts for ether. In March, the CME launched micro bitcoin and ether choices.
In April 2021, CME needed to deny rumors that it was launching dogecoin futures after stories started circulating on Twitter.