New York, Dec 13 (Reuters) – In a landmark decision, the U.S. Commodity Futures Trading Commission (CFTC) has granted approval to Bitnomial, a Chicago-based cryptocurrency derivatives exchange and brokerage, to operate as its own registered clearinghouse. This marks the first instance of the CFTC permitting a vertically-integrated market structure.

Bitnomial, established in 2014, holds exchange and broker licenses and can now add clearinghouse functions to its portfolio. The firm's application received approval with two Democratic and two Republican commissioners voting in favor, while the third Democratic commissioner dissented.

Bitnomial's founder and CEO, Luke Hoersten, expressed his plans for the future, stating, "Now that the licensing process is complete, we can shift our focus to expanding Bitnomial's product offering and customer base."

This decision by the CFTC is significant not only for Bitnomial but also for the cryptocurrency industry, which has faced recent challenges, including regulatory scrutiny and legal issues. Major players like Binance have encountered substantial penalties for violating financial laws. The move towards vertical integration has been criticized by the White House and various regulators, citing potential conflicts of interest.

The CFTC's approval of Bitnomial's application comes amid a complex regulatory landscape and industry pushback. Chair Rostin Behnam, who voted in favor, emphasized the importance of applying rules fairly to all registrants, highlighting the commitment to impartial governance.

This decision sets a precedent for future developments in the crypto sector and will likely influence discussions around vertical integration and regulatory oversight.