Cboe Digital’s application to offer margin futures for Bitcoin (BTC) and Ethereum (ETH), a major US options exchange, has been approved by the US Commodity Regulator.
While Cboe has been offering crypto futures contracts since December 2017, margin trading was not available to users. With the new confirmation, users will trade much less because they have to prepay for Bitcoin (BTC) and Ethereum (ETH) futures. The approval was seen as a positive step by Cboe as it would allow brokers to access crypto futures without the need for detention.
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
Statement from Authorities
“This is where the concept of having a spot market also had its advantages,” said John Palmer, President of Cboe Digital. We didn’t want to have to force the participants to detain or touch the physical presence.” said.
CFTC Commissioner Christy Goldsmith Romero praised Cboe’s approach to the system. He also emphasized that other crypto companies should follow Cboe’s lead and, above all, adhere to the existing traditional market structure.
“In recent years, crypto firms have sought to take an existing business model or market structure from an unregulated environment and move it to a regulated environment. The CFTC does not have a window into the risks associated with models or structures in an unregulated environment.”
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