Revolution In Crypto Clearing Services: Cboe Blows Up The Game With CFTC's Blessing

The U.S. Commodity Futures Trading Commission (CFTC) green lit Cboe Clear Digital's request to expand its clearing services.

The regulatory body approved the addition of clearing services for digital asset futures on a margined basis.

This new offering will serve futures commission merchants, complementing the fully collateralized futures and swaps that were previously sanctioned.

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Cboe Clear Digital operates under the auspices of Cboe Digital Exchange, which is recognized as a designated contract market by the CFTC.

This authorization allows the company to broaden its futures contract clearing services for digital assets.

The expanded services will remain within the confines of the conventional U.S. futures intermediated market structure, according to CFTC commissioner Christy Goldsmith Romero.

Cboe's approach to mitigating risks attached to this expanded offering was marked by prudence. Romero further contrasted Cboe's application with that of the now-defunct crypto exchange FTX, which she described as seeking a "bespoke disintermediated direct-to-customer market structure."

Romero has long been an advocate for integrating suitable crypto operations into regulated sectors.

This ensures customer protection and promotes oversight, transparency, risk management, and accountability, she says.

Romero criticized some crypto firms' attempts to transfer unregulated business models or market structures into the regulated sphere.

"Cboe has avoided such an approach, opting instead to function within the traditional futures market structure and regulatory framework," Romero elaborated.

She commended the company for its proactive engagement with the CFTC and her office to address risk-related concerns and incorporate risk-reducing measures.

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