If there is anything that has ever been common knowledge, it’s the CFTC’s commitment to traders. Ever since Bakkt turned in its application for its Bitcoin Futures contract, the entire cryptocurrency space has been eagerly waiting for Bitcoin news about the CFTC’s approval or disapproval of the Bitcoin futures contract. An approval of Bakkt is expected to change the game in the cryptocurrency space and lead to a rise in the price of BTC. This is because the platform was created to make trading easy and less risky for institutional traders. Recently, the CFTC announced that it is closer to completing its review of Bakkt than everyone thought.
CFTC Is Closely Examining Bakkt’s Bitcoin Futures Contract
On the 19th of March, the CFTC announced that it is working diligently on its review of cryptocurrency related applications including Bakkt. The institutional trading platform, Bakkt, has had its application with the CFTC since last year. From the latest comment by the CFTC, things are going to change soon as they will soon reach a verdict.
Bitcoin (BTC) Price Today – BTC / USD
Dan Berkovitz, the commissioner of the CFTC, was recently asked about the commission’s review of Bakkt. In reply, he said that even if there have been many delays, the CFTC’s commitment to traders is still a priority. He said that the commission is working hard to make sure that cryptocurrency-related products get the review they need. In his words:
“We have a very interactive process with all the entities that come before us and [are] working diligently with all the applicants to process their applications and get their products on the market. But we need to ensure that a crypto product, just like any other product that’s traded on our markets, meets all the standards.”
After answering this question, Berkovitz was asked if the CFTC is giving any special treatment to Bakkt’s Bitcoin Futures application, he acknowledged that there has been a lot of pressure on them due to numerous delays and they are working on putting things in place and giving the required approval. He continued:
“All of the applications before us we’re working very hard on with the applicants, including that one.”
A while ago, the Wall Street Journal reported that one of the reasons why the application for Bakkt hasn’t been approved or disapproved is that there is a little dispute surrounding how the institutional trading platform intends to offer its Bitcoin Futures contract. According to the Wall Street Journal, a spokesperson at Intercontinental Exchange said that they are working closely with regulators to make it work. In his words:
“We are working through the regulatory review process and are looking forward to updating the market soon.”
The last time the launch of Bakkt was moved forward due to a lack of regulatory approval was in December 2019. However, it was pushed forward again. Hopefully, it’s going to be launched by the second quarter of this year assuming the CFTC gives it the green light. Right now, it’s difficult to determine whether the CFTC will approve Bitcoin futures or not. Many of the concerns that led them to deny previous applications are yet to be addressed. Since the CFTC’s commitment to traders is still a priority, it’s important that the cryptocurrency community braces up for a possible denial.
Do you think the CFTC’s commitment to traders will be compromised if it approves the Bakkt’s Bitcoin Futures?
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.