This entire press release is a master class in misunderstanding the relationship between the CFTC, FTX, and FTX US (LedgerX).
FTX US was registered, licensed, and regulated by the CFTC as both a DCM (designated contract market) and a DCO (derivatives clearing organization).
FTX Intl bought LedgerX (the DCO and DCM) presumably as an entryway into the US marketplace and as an attempt to bypass the registration process for those types of entities, but FTX Intl was in no way registered, licensed, or regulated by the CFTC.
It's a shame LedgerX may go down with the ship, and their marketplace has a lot of opportunity.
Why isn't there a new social networking site using the old myspace layout as their template where you can just choose your theme song, your top friends, post weird stuff and have it just be fun?
I'm in the alcohol business and this is spot on. Many states formed a loophole where craft brewers could not only sell their wares in an onsite brewpup, but they could also SELF distribute to retail and restaurants. This allowed them to completely avoid the formal distribution system.
Beer wholesalers, feeling the pinch, are starting to clamp down to clamp down, leading some breweries to SUE state governments like in NC.
FTX US was registered, licensed, and regulated by the CFTC as both a DCM (designated contract market) and a DCO (derivatives clearing organization).
FTX Intl bought LedgerX (the DCO and DCM) presumably as an entryway into the US marketplace and as an attempt to bypass the registration process for those types of entities, but FTX Intl was in no way registered, licensed, or regulated by the CFTC.
It's a shame LedgerX may go down with the ship, and their marketplace has a lot of opportunity.