The U.S. Commodity Futures Trading Commission made a significant decision, approving Bitnomial’s proposal to serve as its registered clearinghouse, an unprecedented move within the commodities sector. Bitnomial, an exchange established in 2014, obtained permission to operate as a vertically-integrated entity, combining exchange, brokerage, and now clearinghouse functionalities. This approval, supported by two Democrats and two Republicans, while dissented by a third Democratic commissioner, marks a new frontier in market structure integration.
Bitnomial’s CEO, Luke Hoersten, highlighted their intent to expand product offerings and clientele following the completion of the licensing process. This decision arrives amidst a backdrop of industry turmoil, with major players like Binance and FTX facing legal challenges and regulatory scrutiny for various violations.
Concerns about potential conflicts of interest due to vertical integration in the crypto industry have drawn criticism from the White House and several regulatory bodies. Meanwhile, federal agencies grapple with industries that actively contest regulatory decisions through legal channels, evident in recent lawsuits challenging CFTC rulings.
Chair Rostin Behnam, supporting Bitnomial’s application, stressed the importance of impartially applying regulations to all registrants, underscoring the significance of fair enforcement in governmental processes.
