<h1>Fintech firm Tassat gets CFTC approval in offering Bitcoin derivatives in US</h1>
New York-based financial technology firm Tassat received official approval to launch a crypto derivatives exchange to offer Bitcoin swaps. Getting approval from the U.S. Commodity Futures Trading Commission is the first challenge for any firm willing to offer crypto derivatives. And CFTC has always been tough to crack but Tassat did it and became a Swap Execution Facility (SEF).

According to the news, CFTC approved the transfer of a SEF registration from a fellow financial services firm TrueEX. Both the companies reached the “agreement in principle” back in July 2019. The official announcement by CFTC states, “TrueEX and Tassat met the requirement for transferring a SEF registration by demonstrating that Tassat will be in compliance with provisions of the Commodity Exchange Act and CFTC approval regulations applicable to SEFs after the registration is transferred. There are currently 19 registered SEFs, including Tassat”
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<h2>Rebranding for a new market</h2>
Tassat was previously known as TrueDigital (a subsidiary of TrueEx) – founded in 2018. The company then, worked with many market players to implement crypto-based services. As the company moved to the derivative trading and payments market industry, they changed the name in September. This approval is a huge step in their future prospective. Though the firm didn’t confirm any launch date, they mentioned that the product is undergoing tests and adding more institutional participants to the project.
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<h2>Potential and lucrative Market</h2>
Crypto derivatives are becoming popular day by day. Investors seem to be enthusiastic about these products across the globe. Bakkt (Intercontinental Exchange backed digital asset) recently experienced a massive jump in the trading volume. Recently, another crypto exchange ErisX received a license from CFTC approval. ErisX is a derivatives clearing organization and plans to launch digital asset futures contracts. The product will be available for trade from later this year.
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<h2>Market Competition</h2>
With the launch of Bitcoin margin swap derivatives, Tassat will be in close competition with names like <a href="https://www.cryptoknowmics.com/crypto/ledgerx-wins-cftc-approval-to-offer-physically-settled-bitcoin-futures/">SeedCX and LedgerX</a>. SeedCX is undergoing tests of a similar product that is yet to be launched. And LedgerX was registered in 2017 by CFTC to offer swaps and other products.

However, the <a href="https://www.sec.gov/">SEC</a> (Securities and Exchange Commission) still seems to be reluctant towards Bitcoin exchange-traded assets. They recently rejected a proposal of Bitwise last month for a similar product.

Fintech firm Tassat gets CFTC approval in offering Bitcoin derivatives in US

Debarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.

Fintech firm Tassat gets CFTC approval in offering Bitcoin derivatives in US

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