Cboe Digital approved for margin trades on crypto futures exchange.

Cboe Digital, a major options exchange in the United States, has received approval from the United States commodities regulator to offer margined futures contracts for Bitcoin (BTC) and Ether (ETH).

Cboe has been offering crypto futures contracts since December 2017, but margin trades were previously unavailable. With the new approval, users will be able to trade Bitcoin and Ether futures with a fraction of the initial upfront investment.

This approval is seen as a positive step for Cboe as it will allow traditional financial firms to access crypto futures without intermediaries having to take custody.

According to Cboe Digital President John Palmer, the approval is advantageous because of the concept of having a spot market, and they didn’t want to force participants to custody or touch the physical asset.

The successful application stands in “stark contrast” to the application that FTX submitted prior to its bankruptcy.

The CFTC requested additional measures for “critical risk-mitigation” to lay out an approach to account for several “heightened risks” related to the digital asset market, including stricter cybersecurity practices.

Gabor Gurbacs, a strategy adviser for stablecoin issuer Tether and investment management firm VanEck, expects that the approval would be seen as a win for institutions.

CFTC Commissioner Christy Goldsmith Romero praised Cboe’s approach and emphasized that other crypto firms should follow Cboe’s lead and fit within the existing traditional markets structure first and foremost.

Regulatory uncertainty from the U.S. Securities Exchange Commission continues to affect the cryptocurrency industry.