Bitnomial, a cryptocurrency derivatives entity, has received official approval from the Commodity Futures Trading Commission (CFTC). This green light allows Bitnomial to formally register as a derivatives clearing organization in the United States.
Subsequently, with this accreditation, Bitnomial gains the authority to settle margined futures and options contracts.
Furthermore, the approval was secured through a decisive four-to-one vote during the CFTC’s open meeting in December. This milestone solidifies Bitnomial’s position as a pioneer among crypto-native exchanges in the U.S.
Additionally, it marks the attainment of a comprehensive suite of licenses covering derivatives exchange, clearinghouse operations, and brokerage services.
Bitnomial’s CFTC Approval: Paving the Way for Digital Asset Derivatives in the U.S
On December 13, a press release emphasized Bitnomial’s distinction as the exclusive U.S. exchange offering margined, physically delivered digital asset derivatives.
This unique proposition enables patrons to secure genuine ownership of digital assets on a leveraged basis. It represents a departure from conventional cash settlement methodologies.
Furthermore, the attainment of the derivatives clearing organization (DCO) license serves as the final piece in Bitnomial’s regulatory puzzle. This accomplishment complements its existing licenses for exchange operations (DCM) and brokerage services (FCM).
Luke Hoersten, Bitnomial’s visionary founder and CEO, conveyed the company’s aspirations to establish a globally regulated platform for derivative trading within the U.S. market. The objective is to shift from the conventional reliance on U.S. dollar and Treasury margin collateral to the utilization of digital assets.
The CFTC’s nod is not only a significant milestone for Bitnomial but also a positive stride for the broader cryptocurrency industry, grappling with recent challenges and heightened scrutiny. However, concerns raised by the White House and diverse regulatory bodies revolve around potential conflicts of interest stemming from vertical integration within the crypto sector.
Binance Settlement, FTX Founder Convicted, Bitnomial’s U.S. Derivatives Trailblazing
In November, the world’s largest cryptocurrency exchange, Binance, reached an agreement to settle charges in the U.S., totaling over $4.3 billion. The charges pertained to transgressions against laws designed to curb illicit financial activities.
As a result, Changpeng Zhao, the former CEO, is presently contending with the looming possibility of imprisonment. In a separate instance in the same month, a jury found Sam Bankman-Fried, the founder of FTX, guilty of fraud.
Consequently, Bitnomial emerges as a trailblazer, reshaping the contours of cryptocurrency derivative trading in the United States while reinforcing its commitment to regulatory integrity.