Media: Bakkt Seeks Launch Permit With New York Financial Regulator
The Bakkt crypto platform, the launch of which has been postponed indefinitely due to lack of regulatory approval, intends to appeal to the authorities of individual states, in particular New York, to obtain permission to store cryptocurrency assets, Bloomberg writes, citing three sources familiar with the situation..
Previously, the issue of cryptocurrency storage was cited as the main doubt of the US Commodity Futures Trading Commission (CFTC), because of which it still refuses to give the green light to the initiative of the owner of the New York Stock Exchange Intercontinental Exchange. If Bakkt can negotiate with the financial regulator of New York, it will not exempt it from the need to obtain CFTC approval..
Bakkt CEO Kelly Loeffler said last month that they are continuing to negotiate with the CFTC and have made some progress. From the standpoint of the regulator, the deliverable bitcoin futures that Bakkt intends to launch on the market differ significantly from the existing CME and Cboe offerings and require the transfer of client funds to a bank or trust company account, which the crypto platform is not. In addition, some ICE partners, which are supposed to be involved in servicing the derivatives market, were lukewarm about the project, two sources said..
However, the CFTC could accommodate Bakkt and allow it to launch on a self-certification basis if the NYS Department of Financial Services approves its status as a custodian of digital tokens, the source added. Before that, the CFTC will most likely want to collect public comments or require ICE to organize a risk assessment committee for the new instrument..
This week, organizers of crypto derivatives platform LedgerX applied for a license that, if approved, could allow them to bring deliverable BTC futures to market ahead of their competitor..