Launch of Bakkt Bitcoin Delayed Continuously, Bitcoin Future Market’s Regulatory Approval Looks Like Stuck in Limbo
The Intercontinental Exchange (ICE) more than 6 months ago had announced its vision for Bakkt, the much-expected bitcoin futures market is still waiting for the approval of regulatory.
The guardian of the New York Inventory Alternative, ICE had at the beginning considered to launch Bakkt in the latter half of December. It was delayed to the end of January. On the New Year’s Eve, the launch of Bakkt was still postponed with ICE mentioning that the earlier aim of launching it on January 24 is revised and in accordance with the CFTC’s process and timeline.
The first quarter of 2019 is about to end, and the Commodity Futures Trading Commission still needs to release Bakkt’s planned exemption for public review. This means that even if the proposal has reached to the commission, it won’t be launched until the mid of April because the commissioners need to provide the public 30 days of time to evaluate and then take few more days to read the comments before voting in order to think of approving the proposal.
At the end of February, the proposal, which could enable Bakkt to keep the bitcoin buying and selling on the platform, was still being examined by the CTFC’s Division of Market Oversight, two authorities noted.
Why the commission is delaying?
The shutdown of the federal government which began on December 22 that lasted for almost 5 weeks formed backlogs over the CTC and on different businesses and it certainly did not support issues. Being stuck up, the company has focused on other issues, not related to crypto, and more than half a dozen enforcement actions have been reported ever since the shutdown ended. However, the determined business plan of Bakkt is also the factor in withdrawing out the process.
To state clearly, the difficulties are not considered with Bakkt’s planned one-day futures contract, which could be settled physically. It specifies that the customer might gain the actual commodity Bitcoin at the due date.
The director of the CFTC’s Division of Market, Amir Zaidi during the end of February spoke that the investigation for estimating cash settled bitcoin future contracts slightly varies from the investigation for estimating physically settled bitcoin futures contracts.
The varying investigation studies whether the future contracts, once provided will be freely flexible to manipulate, Zaidi mentioned. The difference between the future costs and spot has been rewarded by one party to another party. For instance, if the spot cost is decided from a manipulated price feed, then one side will be deceived.
Through regarding a physically settled contract just like Bakkt ’s, users should not be concerned about the cash market, so some of the issues get resolved, and may not discuss the plan in future, Zaidi mentioned.