The Chief Market Intelligence Officer for the US Commodities Futures Trading Commission – Andrew Busch, during an interview on CNBC pointed out that Bitcoin Futures might hoist up a challenge of preventing institutional price manipulation through them.
Having the Chicago Mercantile Exchange Group and Nasdaq declare that they will initiate Bitcoin Futures in the weeks to come – the rage about them in the crypto-space is all you hear.
Andrew Busch in the other hand is quite bullish on the positive way but reminding that it is not going to be easy:
“What we’re trying to do is show people that the exchanges [are] the ones looking at the underlying cash contract to make sure it’s not manipulated. Our role as a derivatives regulator is to make sure the futures contract is not manipulated.”
“We’re going to do that for sure. And we’re going to continue to work with the exchanges just to make sure bitcoin is not manipulated in its use on the exchanges.”
The just born, decentralized and yet-to-be understood nature of the crypto-ecosystem makes it quite vulnerable against manipulative hands – which will be act for sure on the waves of BTC futures which nobody can forecast what will happen.
“This is really important for people to understand looking at bitcoin: the underlying cash market is not regulated at this point.”
“And I think it’s important for investors and everybody else looking at bitcoin and other currencies to keep that in mind when they’re trying to make a decision on what to do with it.”
A growing murmur in the community has been concerns over whether Bitcoin futures will actually work to suppress the bitcoin price in the mid- and long-term.
But, if Busch and the rest of the CFTC keep their guard up, American crypto users can rest easy knowing in the very least that egregious bouts of institutional manipulation will seemingly be clamped down upon.