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Crypto/ICO

Bakkt To The Wall? Lawyer Raises Red Flags

David Rosh Pina
07 November, 2018
1 min read
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Bakkt, the platform created by ICE (Intercontinental Exchange), the parent company of the New York Stock Exchange (NYSE), with the collaboration of Microsoft and Starbucks, will be launched on December 12 of this year. But according to Washington corporate lawyer Jake Charvinsky, the licensing of this new product might not be as easy as it looks.

"… Just because ICE can self-certify Bakkt's futures contracts doesn't mean Bakkt can totally ignore regulatory approval," wrote Charvinsky, who specializes in litigation and government enforcement actions involving digital assets, on his Twitter account. "The CFTC still has jurisdiction over self-certified financial products. Bottom line: if the CFTC doesn't want a futures contract to trade, *it won't.*"

Adding still, "Assuming Bakkt does go the self-certification route, its papers will go live on the CFTC's database here: https://sirt.cftc.gov/sirt/sirt.aspx?Topic=TradingOrganizationProducts …. I'm guessing the CFTC will also put out a press release like the one they did for CME & CBOE."

Bakkt offers the first physically delivered daily futures contracts on Bitcoin traded in BTC/USD (subject to regulatory approval). These contracts will be traded on ICE’s electronic trading platform, which offers industry-leading speed and reliability, regulated by the CFTC. All trades are cleared and guaranteed by ICE Clear U.S., the central counterparty for all ICE-cleared forex futures trades.

Many experts believe that the launch of Bakkt could also prove to be a major step towards the U.S. Securities and Exchange Commission approving Bictoin ETFs (Exchange-Traded Fund).   

"Since Bakkt plans to sell futures, it falls under the regulatory jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). Selling futures without getting CFTC approval first is mostly illegal."

Blockchain Cryptocurrencies Bakkt ICE Jake Chervinsky