CFTC Grants Full Registration to Bitcoin Swaps Trading Platform

The CFTChas granted registration to a trading platform that was an early entrant in the US market for financial derivatives tied to bitcoin.

AccessTimeIconMay 26, 2016 at 10:24 p.m. UTC
Updated May 9, 2023 at 3:03 a.m. UTC

The Commodity Futures Trading Commission (CFTC) has granted formal registration to a trading platform that was an early entrant in the market for bitcoin financial derivatives.

TeraExchange, a swaps execution facility based in New Jersey, had been previously operating under a temporary registration order, and today's announcement formally recognizes this designation. The CFTC said it would regulate bitcoin as a commodity in September of last year.

The approval, one of three granted today according to a release from the agency, comes months after the CFTC simultaneously charged and settled with TeraExchange over alleged violations of the Commodity Exchange Act in 2014.

At the time, the agency said that a trade that took place in October of that year, and that was overseen by TeraExchange, constituted wash trading and pre-arranged trading. The firm settled without paying any financial penalties.

In addition to its bitcoin forwards contract – a type of derivative wherein one party agrees to buy or sell an asset at a predetermined price from another party at a certain date – TeraExchange also runs a bitcoin price index.

TeraExchange’s approval comes shortly after another firm looking to offer derivatives trading in bitcoin, LedgerX, received temporary approval from the CFTC to operate last September.

Image via Shutterstock

Correction: This article has been updated to remove an inaccuracy regarding the current status of LedgerX's CFTC registration.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.