Topic: US lawmakers urge SEC to approve Bitcoin options trading (Read 219 times)

I don't think so! I believe the governments will allow avenues like ETF or Options for the common users. Because they understand that it is very complex to track crypto transactions from the blockchain. They will rather allow big corporations to own actual cryptocurrency. This way they can have a greater control on it.

Governments can't track and monitor millions of worldwide transactions that takes place in crypto market everyday.

Because governments don't want to prohibit their citizens to spend money as it is their resources of tax. Citizens spend more, governments will have more money through tax.

Actual usage of cryptocurrency is different than trading to get profit because it is related to privacy transactions and business deals, governments will not be able to trace those deals and money flows that consequently will cause them losses in tax resource.

I believe governments globally will allow Bitcoin and cryptocurrencies but they will try to do more restrictions on privacy, enforce KYC to have better money flow trace.

US enforcement authorities are constantly attacking crypto related businesses. Sending people to Jail and imposing financial penalty worth billions.

On the other hand, the government is approving ETF and now this option trading matter has surfaced.

Which clearly shows that US government is trying to ban actual crypto usage but allowing ways to profit from its price movement. Neither the ETF, not the option will allow a common user to own actual cryptocurrency while the business houses will own them in the background.

A big conspiracy is ongoing to control the world of crypto. 

Probably the reason for the hold up is that they don't know how they can benefit from it, that's the only way that I see it, they don't know how to maximize their control on bitcoin options trading that's within the companies or trading groups that are within their circle. Plus with all the news about the Samourai, Wasabi, Roger Ver which are mostly negative, the SEC probably don't want to risk the flak they might get off of these events that would affect their decision, you know, not wanting the approval lead to bitcoin options becoming a flop because people don't want to risk it because the negative news are still fresh that people might associate bitcoin with it.

Options and naked selling killed gold, what could go wrong bringing this shit to Bitcoin:
So quoting that damn article:


Satoshi's vision!

I think the fact that they want to tax people who are involved in crypto isn’t a hostile action now that I have a time ponder on it. Yes it might be a bit unreasonable but at least they are not banning or keeping too strict regulations to keep people away as possible from crypto.

They just probably want to profit off of crypto as much as possible.

The Sceptical Chymist
I think that the US government wasn't crypto-friendly but wasn't unfriendly too. At the moment they are still in a neutral position but they don't like the fact that Chinese-associated companies are taking over power from them, for example, Binance in crypto and TikTok in social media. People want crypto, but the US government can't stop it, so they prefer to have it under their control and instead of exchanges like Binance, Kraken and etc, they let people easily trade it locally.
I speculate that the price of Bitcoin will be determined by options/futures traders.

I think that was a typo and you wanted to say options instead of Spots. Spots are the safest way to trade.

Yes, I believe Sec will be forced to approve the Bitcoin options trading in future. They were against the ETFs but they approved those ETFs and in same way they are somehow against the options but they will approve those as well one day.

I don't know about others but I think we are somehow losing essence Bitcoin because of those ETFs and in future because of Bitcoin options trading. I know the options trading will help Bitcoin to achieve higher peaks in value but those options will further deteriorate the decentralized nature of Bitcoin.

Finally, the SEC allowed Bitcoin ETFs. The big dogs got their way, classic. Everyone's talking about Bitcoin options trading next. The SEC shouldn't be Wall Street's yes-man, right? They must balance nurturing new stuff with protecting people. Nobody disputes Bitcoin's power, but options trading? This is casino-level speculation

Bitcoin might get crazier with choices. But isn't that fun? The thrilling rollercoaster? You must understand why the SEC has delayed other crypto matters. Their job is to prevent financial system collapse. Will Bitcoin options be pushed at them? It's possible under enough pressure. The bottom line is whether they think the risk is worth the gain

It will probably happen eventually, but it is good for regulators to be caution and not rush into anything. Ultimately they are meant to exist for the stability of the financial system and more generally to protect average consumers from disaster. Just because something can be done, does not mean it should be done. You mentioned altcoins and while some are stable, others have fallen over very rapidly in the past and generally don't have the same levels of support or even knowledge as bitcoin, so each one should be individually judged on its merits. That would take a long time to assess and only the biggest should be let through.

In short its all the power of the public that speaks. No one can deny anything that has that much popularity and usage among people.increase in demand of a certain thing compels governments to act on it and allow it even thought it is not good for others it's the majority that wins.

Btc and crypto is so in that anything that will benefit that market will be approved by governments sooner or later.

binance and all other exchanges already have options trading so there is no use in holding it back. but once again this is going to make it hard for BTC to rise because this will be used to manipulate prices. if back in the days when there were no huge institutions yet the whales could suppress the price.

this time it will be a climb for the price despite the halving. of course, the SEC will approve it. may the force be with them.

SEC chairman made a big joke because he and SEC. approved Bitcoin Futures ETFs a long time before approvals for Bitcoin Spot ETFs in their country.

Bitcoin volatility is risky for investors, it's ok and I can not deny it but Spots are more risky than Futures, who can agree with SEC chairman and SEC. with this statement?

There is no evidence to support this statement from SEC chairman and SEC. Is option trading more risky than Futures trading, probably, so SEC will use this reason to refuse approvals or delay approvals for a while.

I don't know if it's just me, but there seem to be mixed messages regarding crypto coming from the US government.  On the one hand, the entire space seems to be under a microscope--and that could just be law enforcement going after criminals, but it seems like it's more like a crackdown, that the government is very much anti-crypto.

On the flip side, there are developments like this courtesy of the SEC and whoever they're collaborating with that are positive for bitcoin.  I don't wear a tin foil hat all the time, but my gut is telling me the US government would rather people invest in something traded on the stock exchanges as opposed to outright owning bitcoin or any other cryptocurrency.  That would fit with them trying to protect the US dollar from crypto.

There's one thing I'm curious about when it comes to bitcoin options being traded, and it's if bitcoin's listed price (in the Wall Street Journal or any other financial news outlet, for example) is going to be determined by options/futures traders and not how it currently is, which would be the average price across the major crypto exchanges (I think).  The price of gold and silver is determined by futures traders, not by the price at which those metals are sold to real people in brick-and-mortar stores or online, and there's often a big discrepancy between the two.

i'm sure that sooner or later the sec will approve bitcoin options trading, because the approval of the bitcoin etf has already been done so it shouldn't be a problem for the sec to approve bitcoin options trading. it's just that maybe the sec doesn't see the urgency in approving bitcoin options, maybe they're still waiting and seeing how market conditions in US are and what the impact will be if they approve it. but i'm sure that they will eventually agree to this.

IMO the Securities and Exchange Commission (SEC) will have to approve trading in Bitcoin options sooner or later. The reason is clear that the major companies want the most to benefit from this new market, so they will put strong pressure on the legislators to obtain the required approval.

The same is true for Ethereum, although it has a different classification than Bitcoin according to the opinion of the SEC, but in the end I believe that it will receive approval as it received in Hong Kong, and the same reason is also the saliva of major companies that is flowing over this new market saturated with money.

They will most likely approve the bitcoin options. There is already bitcoin options on the NYSE for that BITO etf which is the bitcoin futures etf. This exists for sure because I traded it in the past. And from what I remember almost nobody used it and the liquidity was awful but the options were at least available.

So I am pretty sure they will approve the options. It doesn’t make sense to list the etfs but no options where investors can hedge their exposure to bitcoin.

As far as I understand bitcoin went up after Bitcoin ETF was approved but it will take time for SEC to approve bitcoin options trading. It is not very important for trading. Trading in a cryptocurrency approved by the SEC is not illegal per se but if a cryptocurrency is designated as a security, it may be illegal to sell or trade it without proper registration with the SEC. It is important to note that the SEC's position on cryptocurrency regulation is still evolving will have to wait to see the next step.

According to the SEC, they said Bitcoin option trading is crucial, and they are trying to protect both the rights and funds of investors, the same investors who are demanding it.
 
My question remains just as similar as the lawmakers ask them: between the approved ETFs and ETPs, which among them possesses a greater risk?
 
Option trades, if carefully followed, give traders a higher chance to make profit with less risk compared to future trades, unless they have other hidden agendas as to why they don't want them approved; if not, there is no point in approving one and leaving the other blank.
 
The lawmakers have given them time to either approve ETPs or give reasons and solid differences between them and ETFs, which are already active and trading on the market. Let's see what their next move will be like.

IMO it's not a matter of if but when. Sooner or later they'll probably also approve ETFs for ETH and will eventually allow in-kind selling of ETFs.
Money talks and chairmans change, just as presidents. Bitcoin can wait them out.

I see no reason why they'd claim that bitcoin can be manipulated. If that was the case why would they allow futures trading in the first place which they did in 2017. If that was allowed everything else will be because you either claim it's a speculative bubble, or it's an asset, a commodity.

You have said it yourself that they did not want to approve bitcoin etf at first but only was basically forced to do so. It took such a long time for the bitcoin etf to finally be approved that I don’t think they are so eager to jump in to the next one.

Despite the many talks, I actually don’t think any altcoin might be approved of etf in the next few months. Especially other bitcoin-related trading.

SEC chairman didn't want to approve Bitcoin ETFs because they think that Bitcoin can easily be speculated and in overall, they don't like it but there was pressure from as influential and powerful company as BlackRock is, so they were forced to approve it because the big guy was demanding it. Now after the Bitcoin ETF approval, everyone has got a huge appetite and wants to get ETFs of altcoins but the SEC doesn't want to give the green light to altcoins ETFs. So here is the thing, since the SEC approved Bitcoin ETFs, why not approve Bitcoin Options Trading?
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