Bakkt Might Experience Another Delay Awaiting CFTC Green-Light
According to Bitcoin Exchange Guide, another delay may occur regarding the launch of ICE-operated Bakkt impending CFTC approval. If this happens, it will be Bakkt’s second time to postpone the launch.
The US Commodity Futures Trading Commission, or CFTC, has yet to give permission for Bakkt to commence operation. The slow-moving process may indicate a few days postponement from the projected date of 24 January 2019. No new date is given as of today.
Details of the Hold Up
The CFTC follows its guidelines that consumer funds should be kept in a bank, a trust company, or a futures commission merchant. With this rule in place, the commission has to hand Bakkt an exception consenting Bakkt to park custody of client BTC in the Bakkt Warehouse instead of the cited traditional institutions. This is the first time the commission handled such a request. Also, they are perturbed by security issues hounding the cryptocurrency sector, namely hackers and other cybercriminals that lurk within the digital landscape of the internet.
Another reason for the delay is due to the partial shutdown of the US government. This is ascribed to disagreeing policymakers apropos the budget allocation for building the US-Mexico border wall.
The 30-Day Public Commenting
On 22 December, the request for exemption was delivered to the commission, after being reviewed by staff members. The commission will then cast a ballot determining whether to open the proposal to the public for a 30-day commenting period. After the commenting period, the CFTC will read and consider the comments before inferring a decision of approval.
But 24 and 25 December are federal holidays. Meaning the 30-day range for public commenting will resume on the 26th. Taking the dates into account, the votes will not meet the time limit intended for the 24 January launch schedule.
Bakkt’s futures offerings, designed to be settled with BTC instead of fiat, is what makes their product distinct from those by CBOE and the CME Group.
Bakkt is hotly anticipated by cryptocurrency market participants who see the platform as a ray of hope that will rally the next crypto bull run. It was initially set to launch on 12 December 2018 before rescheduling to 24 January 2019.