Cboe Digital has received authorization from the U.S. Commodity Futures Trading Commission (CFTC) to offer margined futures contracts for Bitcoin (BTC) and Ether (ETH) to its customers in the United States.
Today the CFTC approved Cboe Clear Digital, LLC to clear margined digital asset futures. Learn more: https://t.co/tWLd2F7E2h
— CFTC (@CFTC) June 5, 2023
Cboe introduced cryptocurrency futures contracts back in December 2017. However, traders were limited in their trading capabilities due to the absence of margin transactions. The recent approval from the U.S. CFTC allows traders to engage in Bitcoin and Ether futures trading with a fraction of the initial investment.
Commissioner Christy Goldsmith Romero of the Commodity Futures Trading Commission (CFTC) expressed her admiration for Cboe’s approach and encouraged other cryptocurrency firms to follow Cboe’s lead by aligning themselves with the existing traditional market structure.
Commissioner Romero commended Cboe for operating within the established regulatory and structural framework of conventional futures markets. She pointed out that in recent years, many crypto firms have attempted to transplant business models or market structures from unregulated environments into regulated ones. According to Romero, this introduces significant risks in the sector.
Commissioner Romero considered the approval of Cboe’s application a significant milestone, particularly when compared to the previously examined application from FTX, which ultimately led to FTX’s bankruptcy. The commissioner highlighted a “stark contrast” between both approvals and explained that Cboe’s approval came after the regulator requested additional “critical risk-mitigation” measures to address the heightened risks associated with the digital asset market. She noted Cboe implemented more rigorous cybersecurity procedures to protect investors’ interests and maintain market integrity.
The approval granted to Cboe Digital signifies a positive step towards the maturation and acceptance of cryptocurrencies in the traditional financial landscape. It offers traders new opportunities and demonstrates the industry’s commitment to responsible and regulated practices.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
