A leading US options exchange Cboe Digital has received approval from the US commodities regulator to offer margined futures contracts for Bitcoin (BTC) and Ether (ETH).
This marks a significant milestone for the exchange, as margin trades were previously unavailable to users.
The approval allows traders to participate in Bitcoin and Ether futures trading with reduced upfront capital, attracting traditional financial firms to directly engage in crypto futures without intermediaries for custody.
John Palmer, President of Cboe Digital, emphasized the advantages of having a spot market, stating, “We didn’t want to have to force participants to custody or touch the physical asset.”
The approach taken by Cboe has garnered praise from CFTC Commissioner Christy Goldsmith Romero, who highlighted the importance of fitting within the existing traditional market structure.
She commended Cboe for operating within the parameters of the traditional futures market structure and regulatory framework, in contrast to other firms that have faced challenges.
The CFTC’s approval followed additional risk-mitigation measures requested by the regulator, including stricter cybersecurity practices. This demonstrates Cboe’s commitment to addressing potential risks associated with the digital asset market.
Cboe Digital’s successful application for margin trades on its crypto futures exchange demonstrates the growing acceptance and integration of cryptocurrencies within the traditional financial system, while also prioritizing risk management and regulatory compliance.
Also Read: CFTC Considers Adding Crypto In Its Risk Management Program
