Derivatives' Old Guard Fights FTX Chief Over Plan to Cut Out Middlemen

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Derivatives' Old Guard Fights FTX Chief Over Plan to Cut Out Middlemen
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FTX's plan to cut out intermediaries in settling crypto derivatives trades is 'fraught with danger,' CME chief Terry Duffy told lawmakers Thursday. jesseahamilton reports

FTX chief Sam Bankman-Fried spent hours before U.S. lawmakers Thursday defending his effort to allow customers to directly clear margin-backed crypto derivatives. The existing derivatives industry and its allies argued he’s seeking a power that could stretch well beyond crypto.

"The risk of this going into other markets is extremely detrimental," Duffy told lawmakers."This is a proposal that's fraught with danger.""We do not have any plans to launch non-digital asset contracts any time soon through this model," he said."I'm not lying to you,” Bankman-Fried insisted at one point. “I really do mean this."

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