CFTC Denies Approving LedgerX to Offer Physical Bitcoin Futures
- The company won a designated contract market license which should clear the way for physically delivered bitcoin futures
US authorities’ concerns about Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term may put on hold blockchain startup LedgerX’s plans to launch the first futures contract that would pay out in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.
In a surprising turn of events, the Commodities Futures Trading Commission (CFTC) denied that granting LedgerX its official registration as a designated contract market (DCM) doesn’t effectively allow the company to offer physically-settled Bitcoin futures contracts, CoinDesk reports.
The company won the so-called designated contract market license which should clear the way for physically delivered bitcoin futures and was also granted an exemption from complying with certain CFTC regulations due to its fully-collateralized clearing model. This should have cleared the way to become the first approved facility where physically-settled instruments on Bitcoin can be listed and cleared. However, the Commodity Futures Trading Commission, which must sign off on any such plans, today says it hasn’t so far approved it.
As a registered DCO, LedgerX is authorized to provide its suite of clearing services with respect to swaps, subject to certain requirements; and futures and options on futures contracts traded on a designated contract market. The New York-based firm said at the time it plans to launch bitcoin derivatives for institutional investors, but it could also offer retail investor products.
Crypto platforms such as Bakkt, ErisX, Seed CX, and CoinFLEX have announced the same products, but LedgerX was supposed to become the first US company to offer such a service. LedgerX also has an advantage over its rivals as its been trading similar products longer than anyone else.
US authorities’ concerns about Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term may put on hold blockchain startup LedgerX’s plans to launch the first futures contract that would pay out in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.
In a surprising turn of events, the Commodities Futures Trading Commission (CFTC) denied that granting LedgerX its official registration as a designated contract market (DCM) doesn’t effectively allow the company to offer physically-settled Bitcoin futures contracts, CoinDesk reports.
The company won the so-called designated contract market license which should clear the way for physically delivered bitcoin futures and was also granted an exemption from complying with certain CFTC regulations due to its fully-collateralized clearing model. This should have cleared the way to become the first approved facility where physically-settled instruments on Bitcoin can be listed and cleared. However, the Commodity Futures Trading Commission, which must sign off on any such plans, today says it hasn’t so far approved it.
As a registered DCO, LedgerX is authorized to provide its suite of clearing services with respect to swaps, subject to certain requirements; and futures and options on futures contracts traded on a designated contract market. The New York-based firm said at the time it plans to launch bitcoin derivatives for institutional investors, but it could also offer retail investor products.
Crypto platforms such as Bakkt, ErisX, Seed CX, and CoinFLEX have announced the same products, but LedgerX was supposed to become the first US company to offer such a service. LedgerX also has an advantage over its rivals as its been trading similar products longer than anyone else.