LedgerX reacts to Bitcoin commodity classification with new appointment

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Following last week’s CFTC ruling classing Bitcoin as a commodity, LedgerX, an institutional platform for trading and clearing bitcoin options, has moved swiftly to familiarise itself with the relevant legislation by appointing former CFTC commissioner Mark Wetjen to its board of directors.

The exchange platform has recently applied for approval from the Commodity Futures Trading Commission (CFTC) for registration as a Derivatives Clearing Organization (DCO) and has has recently received temporary registration as a Swap Execution Facility (SEF).

Failure to register as a Swap Execution Facility was what first sparked the CFTC into action against, another Bitcoin operator.

If LedgerX gets approval, it would become the first U.S. regulated derivatives exchange and clearing house for institutions to trade physically-settled options on bitcoin.

“I am excited to participate in the evolution of the bitcoin asset class with a firm that is building institutional-grade trading and clearing capabilities under a regulatory framework,” said Mark Wetjen, ex-Commissioner of the CFTC.

He went on to add that he is pleased with the way LedgerX is going about dealing with regulations.

“Mark brings a unique combination of market acumen, regulatory expertise and discerning interest in the evolution of the bitcoin market,” stated Paul L. Chou, CEO of LedgerX.

“Mark has been an early advocate of bitcoin derivatives regulation and we are excited to have him on the board,” he added.

If LedgerX gets the requisite approval, it plans to offer exchange-traded, centrally-cleared, bitcoin option contracts to financially-sophisticated market participants such as corporations, financial institutions, trading firms and family offices.

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