CryptoWatch: Bitcoin Futures Slip As SEC, CFTC Look To Ramp Up Oversight

Bitcoin futures on Thursday traded lower but held above the closely watched level of $11,000 as cryptocurrencies broadly saw muted action.

Regulatory scrutiny of digital assets has intensified in 2018, which has deflated — at least momentarily — a spectacular run for bitcoin, ether coins and other cyber units.

Bitcoin trading on Cboe Global Markets Inc. for February XBTG8, -7.43%  lost $110, or 1%, at $11,190, while January bitcoin futures BTCF8, -7.11% on the CME Group Inc.’s exchange, expiring on Friday, slipped $35, or 0.3%, at $11,210.

Late Wednesday, the Securities and Exchange Commission and the head of the Commodity Futures Trading Commission jointly wrote an op-ed in The Wall Street Journal, attempting to underline a united regulatory front in efforts to bring a framework of rules around distributed-ledger technologies.

Our task, as market regulators, is to set and enforce rules that foster innovation while promoting market integrity and confidence. In recent months we have seen a wide range of market participants, including retail investors, seeking to invest in DLT initiatives, including through cryptocurrencies and so-called ICOs, initial coin offerings. Experience tells us that while some market participants may make fortunes, the risks to all investors are high. Caution is merited.

Spot bitcoin prices BTCUSD, -7.16%   on research and data site CoinDesk.com rose 0.3% to $11,275 and ether coins climbed 1% to at $1,068.

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