The first U.S. spot + derivatives exchange is coming? An analysis of Bitnomial's CFTC Compliance path.

Question

[Chain News] Bitnomial in Chicago may have big news - they are preparing to become the first derivatives exchange in the United States to directly offer Spot Crypto Assets trading. How is this going to work? Last month, they submitted a self-certification document to the CFTC, using the regulatory path outlined in section 40.6(a). Simply put, as long as you can prove that you meet the requirements of the Commodity Exchange Act, you can push new rules as a registered designated contract market.

The most noteworthy aspect of their self-certification rules this time is the “Spot” products. According to the Commodity Trading Act 2©(2)(D), they can conduct retail leveraged spot trading—users can directly buy and sell digital assets on the exchange and also leverage financing. From the documents submitted on November 13, it seems that the relevant rules took effect last Friday, so spot trading might be launched in the next few days.

Interestingly, in addition to leveraged trading, they are also preparing to offer non-leveraged Spot trading. This business model is actually quite common on retail trading platforms like certain compliant platforms. However, the issue arises—Congress has not yet finalized legislation regarding the jurisdiction of traditional Spot markets, so whether this approach will encounter resistance is still uncertain. After all, as long as market structure legislation remains unclear, regulatory boundaries will always be an unresolved issue.

GlueGuy · Accepted Answer

Wow, finally someone dares to eat this crab, but what is the CFTC&#39;s attitude towards it...

MidnightSnapHunter · Answer

Spot + derivation in one? Can CFTC approve this trap? It still feels a bit uncertain.

PumpAnalyst · Answer

Goodness, Bitnomial is really daring with this move! Retail leverage spot has been directly brought up, but have you all looked at it? The CFTC hasn&#39;t given a clear statement yet [thinking]

Congress is silent, regulatory vacuum, market maker paradise— isn&#39;t this the best window for Be Played for Suckers?

Everyone, don&#39;t act impulsively, there&#39;s an ambush area ahead, manage your risk before entering a position!

From a technical perspective, this type of project party usually likes to first create a compliant shell, but in reality, it&#39;s the same old routine— pump, play people for suckers, Rug Pull, and repeat.

It&#39;s not that I&#39;m being negative, but history tells us that when it comes to "first in the U.S.", it usually doesn&#39;t end well.

token_therapist · Answer

It&#39;s that same trap of CFTC Compliance again; those Chicagoans really know how to play.