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- 1 Cboe Digital receives approval for the margin tradeing.
- 2 Cboe Digital launched its crypto futures contracts 6 years ago but margin trades were not available to users.
- 3 Christy Goldsmith Romero appreciated Cboe for fitting into the traditional market structure first and then operating.
Cboe Digital on receiving approval for margin trades considers it a small win. In an environment that has regulatory uncertainty and aggressive enforcement action, it is a big deal for Cboe Digital to get approval.
Cboe Digital receives big approval from the United States Commodities Regulator. Cboe Digital is a major options exchange in the United States. It had applications for the contracts of Bitcoin (BTC) and Ethereum (ETH). It has recently been approved by the United States Commodities Regulator.
Cboe Digital launched its crypto futures contracts in December 2017, but margin trades were not available to users. With this approval, users will now be able to trade Bitcoin and Ethereum in fractions as well with whatever fraction they want to work with.
Cboe has more than one advantage with this new approval. It is seen as growth as now traditional financial firms can access these cryptocurrencies. They can access it without the intermediaries taking custody.
John Palmer, the President of Cboe Digital said in an interview that, this is where the concept of having ‘us’ will advantage them in the spot market. He also added that they don’t ever want to force users to touch physical assets or participate in custody.
This is a time of uncertainty in the US market. Almost every crypto company is operating amid regulatory uncertainty and fear of enforcement by financial regulators. The news of approval is small win for the company.
Christy Goldsmith Romero, the CFTC Commissioner appreciated Cboe Digital’s approach. He emphasized that other crypto firms should follow Cboe’s approach and try their best to fit within the traditional market structure first and then do their respective tasks.
Cboe adjusted themselves to the traditional market. They operated within the structure of a traditional futures market and then started to perform their operations.
The commissioner explained that the allowance for Cboe Digital came with extra measures. The regulator requested additional measures for critical risk mitigation and to give a detailed approach to encounter several heightened risks which are associated with the digital asset market.
Strict cybersecurity practice is one of the measures that the commissioner noted. A strategy adviser for stablecoin issuer Tether and investment management firm VanEck, Gabor Gurbacs tweeted on June 5th on his account informing his 56,400 followers that the approval is a win for the institution. Mike Novogratz, the CEO of investor class Galaxy Digital, believes that Cboe Digital has contributed towards the slow buying in the last few months. While Cboe Digital chose to remain silent in this matter and refused to comment on this.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
