major US options exchange cboe digitalof Bitcoin ( BTC) and Ethereum ( ETH) has been approved by the US Commodities Regulator to offer margin futures.
cboe While offering crypto futures contracts since December 2017, margin trading was not available to users. With the new confirmation, users can use Bitcoin ( BTC) and Ethereum ( ETH ) will trade much less because they have to prepay for their 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
John Palmer, President of Cboe Digital, said in a statement. “This was where the concept of having a spot market also had its advantages. 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 stressed 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.”
