Question n° 388 ·
Why is the CFTC pilot program allowing Bitcoin as collateral for derivatives trading significant for institutional investors?
- It provides certainty and reduces counterparty risk for institutions trading Bitcoin derivatives. Bonne réponse
- It increases collateral requirements making Bitcoin derivatives trading less attractive for institutions.
- It forces institutions to register with the CFTC reducing their operational flexibility.
- It mandates institutions to mine Bitcoin using CFTC approved hardware devices only.
Pourquoi est-ce la bonne réponse?
This is correct because a regulated pilot program that accepts Bitcoin as collateral gives institutions a clear legal framework. When collateral is formally recognized by the CFTC, traders face less uncertainty about counterparty defaults. This legal clarity and risk reduction are essential for large funds and banks to confidently enter or expand their Bitcoin derivatives positions.