Bitnomial Ignites US Crypto Wars, Putting Pressure on Coinbase and Kraken Leverage

• Bitnomial will soon be the first US exchange to get full CFTC approval for leveraged spot crypto trading.
• This move gives retail traders access to Bitcoin and other assets with leverage, but only under strict supervision.

The Commodity Futures Trading Commission (CFTC) just gave Bitnomial, a Chicago-based exchange, a big win. They’re going to open the first fully regulated spot crypto market in the US that lets you use leverage. This means that everyday people can now buy and sell real cryptocurrencies like Bitcoin with money they borrow, and the government will be watching. You don’t have to go to offshore sites to do that anymore.

Leverage lets you take on bigger positions with less money up front. With 10x leverage, for example, you can control $10,000 worth of crypto with only $1,000. It’s exciting, but it’s also dangerous because losses add up quickly when prices drop. Next week, Bitnomial’s platform will go live, and it will start with Bitcoin and Ethereum. They say that using both spot trades and futures will help them make better use of their money.

This isn’t just another change to the market. It’s a big deal. Offshore platforms have been able to offer leverage for a long time, but they haven’t always been safe without US rules. Traders are safe from scams and market tricks now that the CFTC is behind them. “This is the first time ever that digital asset margin collateral has come to U.S. markets,” said Luke Hoersten, CEO of Bitnomial. That’s a brave step toward making crypto trading safer.

For a long time, Coinbase and Kraken have been the best crypto exchanges in the US. Overall, Coinbase is a little better, but its competitors are catching up quickly. With Kraken, you can use up to 10 times the leverage on some assets, but that’s not as much as what Bitnomial plans. Bitnomial’s regulated leverage benefit could cause these big companies to lose customers.

Note: This news was written by our editor, rewritten with the help of AI, and reviewed by our editor to ensure its accuracy and compliance with our standards.

https://www.kraken.com/features/margin-trading