The cryptocurrency industry landed one of its most desired prizes last month when regulators at a small but potentially pivotal federal agency allowed a little-known cryptocurrency company to oversee all aspects of brokering, facilitating, and clearing trades of its digital assets.

Regulators and experts say the move, which came after millions were spent in lobbying in 2023 alone, could endanger customer assets and stifle competition, as well as set a dangerous precedent that could set up this and other financial markets for spectacular collapse.

The December 13 approval of the application from Bitnomial, a small Chicago-based crypto derivatives company, is the first time the Commodity Futures Trading Commission (CFTC) has approved any financial institution to vertically integrate as an exchange, broker, and clearinghouse, without doing so through company acquisitions.