Crypto.com Secures CFTC Approval for U.S. Margined Derivatives Trading

Executive Summary

On September 26, 2025, Crypto.com announced it has received approvals from the U.S. Commodity Futures Trading Commission (CFTC) to offer margined derivatives trading services in the United States. This significant regulatory milestone permits its subsidiaries, Crypto.com | Derivatives North America (CDNA) and Foris DAX FCM LLC, to operate within the U.S. derivatives market. The approval enhances Crypto.com's regulated offerings, potentially increasing institutional participation and liquidity within the U.S. crypto derivatives landscape.

The Event in Detail

Crypto.com's CDNA, a CFTC-registered exchange and clearinghouse, secured an amendment to its Derivatives Clearing Organization (DCO) license. This amendment enables CDNA to offer cleared margined derivatives on cryptocurrencies and other asset classes, expanding beyond its existing capabilities for fully collateralized derivatives available through its prediction markets. Concurrently, Foris DAX FCM LLC, operating as Crypto.com | FCM, gained approval as a Futures Commission Merchant (FCM) from the National Futures Association (NFA). This dual approval positions Foris DAX FCM LLC to serve as an intermediary for both retail and institutional clients in the derivatives market.

The process for these approvals involved extensive engagement with regulatory bodies. CDNA initiated discussions with CFTC Staff in 2023 and formally filed its request to amend its DCO order on June 7, 2024. Foris DAX FCM LLC's FCM application was filed earlier, on April 13, 2022. Both entities provided extensive documentation and performed multiple trading and clearing system demonstrations for regulatory review.

Kris Marszalek, Co-Founder and CEO of Crypto.com, stated that "The full stack of CFTC-approved derivatives licenses allows Crypto.com to seamlessly provide clients with the most comprehensive and integrated derivatives experience." Nick Lundgren, Chief Legal Officer of Crypto.com, further emphasized that acquiring a CFTC-registered clearinghouse advances the company's mission to be "the most regulated financial services platform in the world."

Financial Mechanics and Regulatory Framework

The amended DCO license for CDNA signifies a critical shift, allowing the entity to clear margined contracts rather than being limited to fully collateralized products. This development is crucial for facilitating leveraged trading within a regulated framework. The approval of Foris DAX FCM LLC as an FCM grants Crypto.com the ability to intermediate client trades, effectively controlling the entire U.S. futures stack: exchange, clearinghouse, and broker. This integrated model is characteristic of traditional Chicago exchanges but remains rare among crypto-native firms operating within the U.S. regulatory environment.

This structure has historical roots; CDNA is the rebranded North American Derivatives Exchange (Nadex). Nadex originated from HedgeStreet, one of the first electronic venues to receive CFTC designation in 2004. IG Group acquired HedgeStreet in 2007, rebranding it as Nadex, and subsequently sold it to Crypto.com in 2021 for $216 million, alongside a minority stake in the Small Exchange. This acquisition provided Crypto.com with an existing U.S. exchange and clearing license, a strategic advantage as regulatory scrutiny intensified.

Market Implications and Business Strategy

Crypto.com's latest regulatory approvals are poised to significantly impact the U.S. crypto derivatives market. By enabling the offering of regulated, leveraged derivatives—including perpetual futures contracts—to U.S. retail and institutional customers, the company aims to attract increased institutional participation and liquidity. This move expands Crypto.com's competitive footprint in the U.S. and sets a precedent for other platforms seeking similar regulatory pathways, contributing to the broader mainstream acceptance and regulation of crypto financial products.

From a business strategy perspective, these licenses allow Crypto.com to integrate margined derivatives seamlessly into its existing suite of offerings, which includes spot markets, prediction markets, stocks, qualified custody, credit, and debit cards. This positions Crypto.com as a comprehensive financial hub, capitalizing on regulatory tailwinds. The timing of these approvals is particularly notable, following several years of heightened enforcement actions by U.S. regulators against offshore derivatives venues, such as Binance and FTX. This regulatory environment has compelled major firms to pivot towards onshore, regulated models, further validating Crypto.com's strategic acquisitions and compliance efforts.

Broader Context: Regulatory Landscape and Future Outlook

The CFTC's approvals for Crypto.com align with a broader regulatory push within the United States to foster innovation in digital assets while maintaining robust oversight. The CFTC has also announced initiatives to enable the use of tokenized collateral, including stablecoins, in derivatives markets. Acting Chairman Caroline D. Pham has highlighted collateral management as a potential "killer app" for stablecoins, emphasizing its capacity to revolutionize how margin requirements are met in the substantial $20 trillion U.S. derivatives market.

This initiative builds on recommendations from the President's Working Group on Digital Asset Markets and follows the passage of the GENIUS Act in 2025, which regulates stablecoins and permits their use as collateral in derivatives and traditional markets. Such measures aim to enhance capital efficiency, reduce operational costs, and integrate blockchain-based assets into traditional financial systems. The CFTC is actively seeking public feedback on these proposals, with a pilot program potentially launching as early as 2026. This concerted effort signals a U.S. commitment to leadership in tokenized finance, albeit with ongoing challenges related to ensuring equitable access amid inherent leverage risks and navigating jurisdictional overlaps between the SEC and CFTC. Crypto.com's adherence to these regulatory shifts marks an important step toward a more mature and regulated U.S. crypto market.