A week ago, Ethereum World News told the crypto community that the launch of Bakkt could be postponed for the second time due to delays in getting the necessary approvals for launch by January 24th. In the report, we explored how the Commodity Futures Trading Commission (CFTC) might need more time to process Bakkt's request for exemption from its Bitcoin custody solution.
CFTC regulations require clients' funds to be held by a bank, trust company or a future commission broker (FCM). In the case of Bakkt, they will store BTC in their warehouse on behalf of their customers.
Confirmation from ICE that the launch will be postponed
Today, ICE (the parent company of Bakkt) has published a notice on its website explaining that the Bakkt launch date of 24 January mentioned above will need to be amended. The publication added that they will provide an updated launch timeline at the start of 2019.
Following consultation with the Commodity Futures Trading Commission, ICE Futures US, Inc. plans to provide an updated launch timeline at the start of 2019 for the trading, clearing and filing of the Bakkt Bitcoin Daily Futures Contract (USD ).
The launch was previously scheduled for January 24, 2019, but will be modified according to the process and timing of the CFTC.
Other possible factors contributing to the delay
The US government is currently going through what is known as "a government closure" because of the budget trove of 2019 caused by President Trump asking for funding for the border wall with Mexico. President Trump has requested $ 5 billion to be assigned to the Department of Homeland Security that will proceed with the construction of the wall. The arrest in progress led to the blocking of the main government functions and the abandonment by the federal employees of a considerable amount of time.
Also the CFTC – being a government agency – has been hit.
Bakkt provides 182.5 million dollars from 12 partners and investors
Bakkt's CEO, Kelly Loeffler, announced through an average post that he had completed the first round of funding that raised $ 182.5 million from 12 partners and investors who believe in the future of digital assets.
Partners and investors include Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft's venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers and Initiative Protocol.
Ms. Loeffler also explained their ongoing cooperation with the CFTC to obtain the necessary approvals.
Our team worked closely with the Commodity Futures Trading Commission for the better part of 2018.
At the sector level, regulatory approval for physically delivered and stored bitcoins will establish and amplify the voice of US authorities as the digital resource market evolves globally.
We have filed our questions and approval time is now based on the regulatory review process.
What are your thoughts on the launch of Bakkt postponed a second time? Let us know in the comments section below.
Disclaimer: This article is not intended to give financial advice. Any other opinion present here is purely that of the author and does not represent the opinion of Ethereum World News or one of its other writers. Perform your research before investing in one of the many cryptocurrencies available. Thank you.