Anchorage Seeks CFTC Registration as Options Top $8B

Anchorage Digital has applied through the National Futures Association to register a new subsidiary, Anchorage Digital Swap Dealer, LLC, with the Commodity Futures Trading Commission. The move follows growth in its U.S. crypto-options business beyond the $8 billion threshold associated with swap-dealer registration and responds to rising institutional demand for regulated derivatives, including from public companies holding Bitcoin and Ether and asset managers managing crypto exposure. CEO Nathan McCauley said registration would let clients trade with a federally regulated counterparty using familiar risk-management, margin and reporting practices. If approved, the subsidiary plans to offer European-style Bitcoin and Ether options with maturities of up to one year, with additional products potentially following; the review’s timing is unknown.