Crypto.com has made a significant leap in the competitive landscape of the US derivatives market by securing approval from the Commodity Futures Trading Commission (CFTC) to offer margined derivatives. As stated in the official source, this development positions the Singapore-based exchange to directly challenge established futures platforms in a highly regulated environment.
New License for Crypto.com
With this new license, Crypto.com can now clear margined contracts through its US subsidiary, Crypto.com Derivatives North America. Additionally, its affiliated brokerage, Foris DAX FCM LLC, is authorized to operate as a futures commission merchant, allowing for a comprehensive service offering in the US market.
Control Over the Futures Ecosystem
This strategic move grants Crypto.com control over the entire futures ecosystem in the US, encompassing:
- exchange operations
- clearing services
- brokerage functions
This integrated structure is reminiscent of traditional exchanges in Chicago, yet remains uncommon among crypto-native companies.
Significance of the Approval
The timing of this approval is particularly noteworthy, as US regulators have intensified their scrutiny of offshore derivatives platforms. By securing this license, Crypto.com is poised to capture a larger share of the US market, positioning itself as a formidable player in the evolving landscape of cryptocurrency derivatives.
As the government shutdown looms, the implications for the CFTC's leadership and legislative activities are becoming increasingly evident. Currently, the urgency for bipartisan negotiations is underscored by recent developments in the cryptocurrency sector, including Northern Trust's rumored $493 million Bitcoin acquisition and the SEC's approval of Grayscale's Ethereum Trust ETFs. These events highlight the potential ramifications of legislative delays, making it crucial to stay informed about how these emerging trends are shaping the market landscape. For more details, see the full article here.
