Kraken Pulls Margin for US Customers

The ECP law essentially dictates that you need 30 million dollars to trade on kraken with margin. It couldn't be a bigger screw you to the poor. It's complete classism. There's no argument that can be made about how this protects mainstreet investors, it' a ban of margin for all but the mega affluent who don't even need it.

You can do something constructive about this, you can call, email, and fax representatives that are on the Congressional blockchain committee, and ask them what plans they have to goad the CFTC into taking action to create a domestic regulatory environment that can get coinbase and kraken and other US exchanges and other foreign exchanges applying, what can get them approved for licensed derivative offerings. ask the representatives what type of bills, technological changes, and other legal changes need to occurr to get US investors on par with the rest of the world's crypto derivative offerings, what will get us a legal licensed domestic alternative to FTX and Binance, where america can actually compete and have a fully fledged comprehensive crypto market.

The United States can't ban futures forever. We will get left behind. No mature industry sector can function without liquid retail futures that are regulated and overseen. Specifically the Elligible Contract Participant rules are causing US investors to be banned off of most crypto offerings throughout the world, far moreso than security laws. This is principally because the US will not work with incumbant exchanges to come up with a plan to meet the requirements they need to give these licenses, in effect they are making the licensure process unattainable, and being vague about what it would take.

This is an issue that is deeply hurting america's involvement in crypto, leaving us closed out of the vast majority of services and companies. Our medium sized businesses can't hedge or access futures, and professional traders like myself just lost the only domestic legal sanctioned source of margin for crypto. Plus, the CFTC is already promising that it fully intends to enforce and shut down any 'DeFi derivative' site.

Unfortunately reddit doesn't have many traders. Most of the traders are on Crypto Twitter. Reddit tends to be very very anti margin, because they don't know what they're doing and get rekt. But I assure you, the US cannot compete longterm with these type of draconian regulations banning retail.

submitted by /u/samdane7777
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