IRS Is Sending Warning Letters To Cryptocurrency Owners

Crypto exchange ErisX based in Chicago, filed a letter with the Commodity Futures Trading Commission of the United States that we take a closer look into our crypto news today as a response to the request of the agency for ETH mechanics and market feedback.

The letter was submitted yesterday and focuses on the introduction of a regulated futures contract on Ether and how they will positively impact the growth of the market. ErisX is a traditional futures market reboot and will provide full support for BTC trading, eth and litecoin as well as futures contracts in the second half of 2019.

The CFTC determined that Bitcoin is a commodity rather than security which makes it falls under the Securities and Exchange Commission rules. However, Ether was cleared of the securities classification in June 2018. ErisX pointed out:

‘’The difference between Ethereum and its predecessor saying that ‘’Ethereum built some of the architectural principles of Bitcoin to extend its functionality of a distributed, secured, record-keeping system to include new computational capabilities for the execution of arbitrary code.’’

The analysis from ErisX on the state of the ethereum market shows that there is lack of regulatory clarity that prevents regulated enterprises from entering the sector which will end up in a preponderance of ‘’unregulated or lightly regulated exchanges.’’ ErisX continued:

 “Not unique to Ether, but [may be exacerbated by] the current fragmented global market structure of trading platforms and ‘exchanges’ with significantly varying degrees of regulatory oversight and operational transparency and integrity.”

The exchange has appointed three veterans from YouTube, Barclays and the Chicago Board Options Exchange for the executive places in the company and is also expecting from Joseph Lubin of ConsenSys to join the board of directors.