Analysis: Bakkt is expected to be approved in just 10 days

Bakkt is about to be approved by the US Commodity Futures Trading Commission

The US Commodity Futures Trading Commission (CFTC) is expected to approve Bakkt (bitcoin futures products) within 10 days. More precisely, as long as the US Commodity Futures Trading Commission does not object to this period, (bakkt can start issuing).

On the other hand, you are unlikely to trade Bakkt futures after 11 days. If the Commodity Futures Trading Commission has no objections, Bakkt is also preparing for a User Acceptance Test (UAT) for its futures and hosting solutions.

User acceptance testing is expected to begin in July, ensuring that customers can log in and test transaction and hosting modules.

About Bakkt Futures

Bakkt also provides more details on upcoming futures contracts. There are two varieties to choose from: daily settlement contracts and monthly futures contracts. The price formation mechanism will use tools to detect subversive trading behaviors, such as downsizing. In other global futures markets, the contractual margin settlement method will be consistent with the capital efficient approach to risk management.

In addition, Bakkt will invest $35 million in the clearing house to compete with other market participants for integrity and security.

Who still holds bitcoin

Finally, Bakkt also revealed that it is working with the New York State Financial Services Authority to become a qualified custodian. Digital asset storage solutions will be supported by “insurance, cybersecurity and comprehensive compliance.” However, their blog post does not mention how far this process has gone, which has led some commentators to question users starting in July. The feasibility of the acceptance test.

According to blockchain week news reports, Bakkt applied to the Commodity Futures Trading Commission for self-certification of Bitcoin futures, which is a big step forward. However, the New York State Financial Services Authority will take some time to approve their storage plans, and they will not be able to start the program until then.

They expect the public beta day to be July 2019, which is something that can only be believed by the eyes.

Can you believe in the promised public beta day?

Last summer, the Intercontinental Exchange (ICE) announced the launch of Bakkt, a physical settlement of bitcoin futures, which promises to pave the way for institutional investors. However, the issue date originally scheduled for November 2018 was postponed for one month and was finally postponed indefinitely. This is a sad complaint about the status of cryptocurrency legislation and regulation because it has not been defeated in the market by any other competing products aimed at institutional investors.

Regulators seem to be keen to delay in approving password-based investment vehicles such as ETFs and futures contracts. Self-certification may have avoided the worst cumbersome procedures of the Commodity Futures Trading Commission, but it is far from guaranteed to begin beta testing in July 2019.

Translator interpretation

The issuance of Bitcoin futures means that the cryptocurrency market will be closer to the traditional financial market, which also means that the regulation of the cryptocurrency market has become complicated.

The regulatory division of labor is complicated. The CFTC defines cryptocurrency as a commodity. The US Securities and Exchange Commission (SEC) has clarified that Bitcoin itself will not be classified as a security, but tokens issued through ICO should be considered as “securities” subject to SEC regulation. However, some cryptocurrency derivatives, such as Bitcoin ETFs, have the commonality of different financial derivatives in terms of definition and classification, and have the characteristics of unpredictable future impact on the market. These complex characteristics pose challenges to the regulatory division of labor.

The complexity of regulatory advice. Compared with the Bitcoin ETF, the way of issuing bitcoin futures seems to be much smoother. The Bakkt introduced in this article is not the first bitcoin futures approved for issuance. As early as 2017, the Chicago Board of Trade has issued cryptocurrency futures through self-certification. Bitcoin futures Bakkt is issued through self-certification, which also proves that in the field of digital currency regulation, CFTC's regulation of cryptocurrency derivatives is more relaxed, and it is more inclined to give futures exchange more autonomy. In contrast, the US Securities and Exchange Commission has stricter regulation of Bitcoin financial derivatives. Whether cryptocurrency derivatives such as Bitcoin futures and Bitcoin ETFs will cause price manipulation in the bitcoin market, there are differences in regulatory opinions between different regulators and between different members of the same regulatory body.

The regulatory approach is complicated. In stark contrast to the delays of the CFTC and SEC regulators, the recent cryptocurrency industry's multi-participants are eagerly awaiting the approval of cryptocurrency financial derivatives, and this expectation for financial derivatives is expected to be two years. The price increase period of the former Bitcoin is not obvious. This expectation, on the one hand, shows that the bitcoin market is expected to be recognized by the mainstream financial market. On the one hand, it also shows that the demand for futures and other financial derivatives in the bitcoin market has become more and more obvious. The traditional bitcoin secondary market is subject to The limits of the buying and selling rules themselves are no longer sufficient for many Bitcoin investors. The issuance of more cryptocurrency futures means that the regulation of cryptocurrencies needs to be extended from simple spot supervision to futures regulation. The complicated and variable market operation methods of financial derivatives also mean that the regulatory methods must be more flexible.

Author: Li Jing moisten

Article transferred from the public number: block technology research and supervision

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