The approval enables Cboe clients to trade crypto futures by placing a lower amount of capital collateral upfront.

Cboe Digital, the crypto exchange and clearinghouse, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to offer margined bitcoin and ether futures contracts. This regulatory nod allows Cboe’s clients to trade cryptocurrency futures with less collateralized capital upfront. Previously, the exchange only offered fully collateralized trading, where users had to provide the full contract amount before trading.

The approval enables Cboe to launch physically and financially settled bitcoin and ether margined futures contracts in the second half of the year. (Bitcoin.com)

Cboe Digital is currently the only U.S.-registered exchange that allows both spot and derivatives trading of various digital assets.

The approval from the CFTC comes amid increased regulatory scrutiny on the crypto sector. This week the SEC filed suit against Binance and Coinbase, charging them with securities violations.

CFTC Commissioner Christy Goldsmith Romero issued a statement regarding the Cboe’s expanded clearing of digital asset futures.

“Cboe’s application stands in stark contrast to FTX’s application for a bespoke disintermediated direct-to customer market structure,” wrote the Commissioner. “The proposed FTX model was never adopted by the Commission, but it put at risk customers’ bankruptcy priority, other customer protections, and financial stability.”

“The CFTC does not have a window into the risks associated with models or structures in an unregulated environment.  Cboe has not done that, instead operating within the parameters of the traditional futures market structure and regulatory framework,” the Commissioner added.

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