‘Historic Day’ for Crypto.com: Pham’s CFTC Approvals Seen as Real-Time Delivery on Trump’s Agenda

Core Insights - Crypto.com has become the first American crypto exchange to secure a complete set of licenses from the U.S. Commodity Futures Trading Commission (CFTC), enabling it to offer a full range of derivatives services to users [1][8]. CFTC Licensing Framework - The CFTC regulates derivatives markets through three core categories of licenses: Futures Commission Merchants (FCMs), Designated Contract Markets (DCMs), and Derivatives Clearing Organizations (DCOs) [2]. - FCMs act as brokers between customers and futures markets, while DCMs are licensed exchanges where futures and options are traded, requiring a clearinghouse for operations [3][4]. Crypto.com's Regulatory Journey - Crypto.com obtained initial DCM/DCO registrations in March 2022 through the acquisition of Nadex, which allowed only 100% collateralized positions without leverage [5]. - The recent amendment permits Crypto.com to offer margined futures to American users, marking it as the first retail-focused exchange to do so [6][8]. Market Context - The CFTC's crackdown on unregistered exchanges in the mid-2010s led to a significant reduction in available derivative products in the U.S. market, with the CME Group initially holding a monopoly on regulated margin contracts for Bitcoin and Ether [9].