BTC Futures Trading Bakkt Cancelled
In the latest cryptocurrency news, Intercontinental Exchange or ICE is once again expected to delay the launching of Bakkt. The parent company of the titular New York Stock Exchange is reportedly postponing the release of the highly anticipated Bitcoin futures trading and custody platform. Apparently, this is the second time the firm has decided to do so.
Original Launch Date
Originally, ICE wanted to launch the aforementioned platform in January 24 this year. However, the company decided to move it, especially since it has yet to acquire the much-needed approvals from the U.S. Commodity Futures Trading Commission (CFTC). And considering the pace it is moving right now, it is safe to say that these approvals will be secured just in time to hit the necessary target.
It is worth noting that this does not really mean that the CFTC will not approve the plan — or that it has no reason to do so. In fact, according to official reports, an individual familiar with the agency’s inner workings said even the original launch date was likely to have been plausible. So, in a sense, this delay may not all be a cancellation whatsoever — and that it could only take a couple of days or so.
Specifically, the CFTC must be able to grant an exemption for Bakkt’s plan to custody Bitcoin on behalf of its clients in its own “warehouse.” This narrative is particularly explained by sources familiar with regulatory discussions of the plan. The agency regulations, by essence, normally require that customer funds be held by a bank, trust company, or even futures commission merchant (FCM).
Review Process Completed
Perhaps the good thing here is that the staff of the agency has already completed the review process of Bakkt’s exemption request. What is even more interesting is that it has already been forwarded to the commission, one source said.
What will happen next is that the commissioners are expected to vote on whether to put out the proposal for public comment. After the 30-day comment period, the commissioners would likely take at least a couple days to read the comments. From there, they could move forward with the voting on the proposal itself.
There is a huge catch here, though. For starters, both Monday and Tuesday are federal employee holidays. So unless these government officials will find the effort to work on their days off, the earliest commissioners are likely to vote on a public comment period. With that in mind, it would make sense for the 30-day clock to be on Wednesday, Dec. 26, which is simply the day after Christmas.
Ultimately, this would any final vote past Bakkt’s January 24 launch target. And yes, this could happen even without taking into account the time needed to read the public comments. The possibility of a U.S. government shutdown threatens to further delay the process.