CFTC Approves Bitnomial's Bitcoin Futures: A Leap in Crypto Derivatives

• Bitnomial Receives Approval to Register as a Derivatives Clearing Organization
• Approval for Bitnomial Margined Futures and Options
• Bitnomial's Existing Approvals and Future Plans
• Correction Note

Bitnomial Receives Approval to Register as a Derivatives Clearing Organization

The Commodity Futures Trading Commission (CFTC) has given Bitnomial, a cryptocurrency derivatives firm, the green light to register as a derivatives clearing organization in the U.S. This approval will allow the company to settle margined futures and options contracts.

Approval for Bitnomial Margined Futures and Options

Bitnomial, a company that has been operating for four years, intends to provide U.S. investors with margined bitcoin futures as well as options connected to bitcoin futures. The CFTC commissioners voted 2-1 in favor of Bitnomial's application. In this vote, Commissioner Kristin Johnson and Chairman Rostin Behnam provided their approval, whereas Christy Goldsmith Romero was the only commissioner to vote against the proposal. Caroline Pham and Summer Mersinger were in concurrence, thus supporting the majority decision.

Bitnomial's Existing Approvals and Future Plans

Prior to this recent approval, Bitnomial had already been given permission to function as a designated contract market, which allowed it to list the futures and options contracts. The firm also had the authorization to act as a futures commission merchant, which enabled it to trade with customers.

The approval was concluded after the commissioners discussed potential issues such as conflicts of interest during an open commission debate. Following the approval, Bitnomial's CEO, Luke Hoersten, stated that the company aims to offer a broad spectrum of physical and digital commodities.

Hoersten further elaborated, Unlike other businesses that have attempted to disintermediate the brokerage industry, our Futures Commission Merchant offers wholesale digital asset-related services and support to our brokerage partners, institutions, and dealers. He also added that now that the licensing process has been finalized, the company can concentrate on expanding Bitnomial's product offerings and customer base.

Correction Note

CORRECTION (Dec. 13, 2023, 21:41 UTC): This article has been updated to correct a previous statement. A vote of concurrence supports the majority decision and should not be misconstrued as an abstention.

Edited by Jonathan Stoker