Major breakthrough! The United States has brought Bitcoin derivatives trading under regulation for the first time

A Bitcoin ETF may not seem like a good idea at the moment in the minds of U.S. financial regulators, but Bitcoin options and swaps are another matter.

Last week, the U.S. Commodity Futures Trading Commission (CFTC) brought Bitcoin derivatives trading under regulation for the first time, marking a major breakthrough in Bitcoin derivatives trading.

Previously, traders who wanted to bet on the Bitcoin derivatives market had to strictly trade in the over-the-counter market due to a lack of relevant facilities. But now the CFTC has granted LedgerX Bitcoin SEF (Swap Trading Facility) status, and once it obtains DCO (Derivatives Clearing Organization) qualifications, LedgerX will become the first federally regulated Bitcoin options exchange and clearing house. At that time, institutional traders will be able to buy and sell related Bitcoin derivatives on the exchange.

According to Wall Street News, Wall Street is currently showing great interest in digital currency assets such as Bitcoin. After the CFTC regulates Bitcoin derivatives trading, Bitcoin derivatives trading may usher in a wave of prosperity.

What is SEF

SEF is a swap trading platform created under the Dodd-Frank Act, and derivatives on this platform will face stricter regulatory scrutiny.

By granting LedgerX SEF status, the CFTC is providing institutional traders such as hedge funds and CTAs with a safer and more liquid bitcoin derivatives clearing and trading market.

Bitcoin Price

Since the plunge on June 14, the price of Bitcoin has slowly recovered, but there has not been much fluctuation since entering July.

The bitcoin market has so far shown a muted reaction to the CFTC's major move toward bitcoin derivatives trading. According to coingecko data, bitcoin is now trading at $2,514.