US authorities’ concerns about Cryptocurrencies may put on hold blockchain startup LedgerX’s plans to launch the first futures contract that would pay out in Bitcoin .

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 may put on hold blockchain startup LedgerX’s plans to launch the first futures contract that would pay out in Bitcoin .

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.