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- Bitnomial received approval from the US CFTC to register as derivatives clearing house in the United States.
- The approval, which is the first of its kind, came after the CFTC Commissioners voted 2-1 in making the decision.
- Bitnomial, an exchange founded in 2014, already has exchange and broker licenses.
Bitnomial, a cryptocurrency derivatives firm, received approval from the Commodities Futures Trading Commission to register as derivatives clearing entity in the United States, Reuters reported Wednesday.
The CFTC voted in favor of the Chicago-based cryptocurrency firm’s request to act as its own registered clearinghouse on Wednesday. Bitnomial’s proposal was approved by CFTC commissioners. While two Democrat and two Republican CFTC Commissioners voted in support, a third Democrat, Commissioner Christy Goldsmith Romero, voted against it.
According to the Reuters report, this approval is the first time the commodities regulator has agreed to authorize a vertically integrated market structure. Moreover, Bitnomial, an exchange founded in 2014, already has exchange and broker licenses.
Speaking on the approval, CFTC Chair Rostin Behnam, who voted in support, remarked, “We have to apply the rules fairly and equally to all registrants. Otherwise, in my view, that is a complete dereliction of duty and a very scary direction of government we would head in.”
Meanwhile, Bitnomial CEO Luke Hoersten reiterated the company’s plans to offer “a broad spectrum of physical and digital commodities.” With the licensing process complete, Hoersten said Bitnomial’s focus will shift to expanding its product offering and customer base.
The regulatory approval comes at a time when several crypto firms and founders are knee-deep in lawsuits with regulators. Notably, the largest cryptocurrency exchange, Binance, and its former CEO, Changpeng Zhao, pleaded guilty to violating anti-money laundering laws. The exchange has agreed to pay a $4.3 billion fine in settlement.
Additionally, crypto exchange founder Sam Bankman-Fried was found guilty of money laundering allegations, alongside market manipulation and misuse of customer funds. Both Sam Bankman-Fried and Zhao have their sentencing scheduled to be held in 2024.
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