- The motion was approved by all with the exception of Christy Goldsmith Romero.
- The commissioners discussed topics such as potential conflicts of interest before voting.
Crypto derivatives firm Bitnomial has been authorized to settle margined futures and options contracts after registering as a derivatives clearing organization in the United States with the consent of the Commodity Futures Trading Commission (CFTC).
Bitnomial applied to the Commodity Futures Trading Commission (CFTC) to provide U.S investors with margined bitcoin futures and options linked to bitcoin futures. The CFTC commissioners voted 2-1 in support of the application.
With the exception of Christy Goldsmith Romero, the motion was approved by Commissioner Kristin Johnson and Chairman Rostin Behnam. Both Summer Mersinger and Caroline Pham agreed and backed the decision of the majority.
Expanding Product Offering and Customer Base
Bitnomial was already authorized to list futures and options contracts as a recognized contract market and to deal with consumers as a futures commission merchant.
The commissioners discussed topics such as potential conflicts of interest before voting in support of the company’s proposal. Bitnomial CEO Luke Hoersten said the firm’s intention is to provide “a broad spectrum of physical and digital commodities.”
Hoersten further added:
“Unlike other businesses that have attempted to disintermediate the brokerage industry, our FCM offers wholesale digital asset-related services and support to our brokerage partners, institutions, and dealers. Now that the licensing process is complete, we can shift our focus to expanding Bitnomial’s product offering and customer base.”
Derivatives clearing firms are an important intermediary in the market, and the U.S CFTC is moving in the direction of forcing them to keep their clients’ money separate from their own. In an effort to stop derivatives businesses from tampering with their customers’ money, the CFTC has acted, which is influenced in part by last year’s collapse of defunct crypto exchange FTX.
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