Bitcoin Futures Launch Hits Regulatory Snag via @WSJ

As reported by The Wall Street Journal, “Government concerns about cryptocurrencies have snarled a plan by the owner of the New York Stock Exchange to launch the first futures contract that would pay out in bitcoin.

“Intercontinental Exchange Inc., ICE 0.26% known as ICE, initially targeted November 2018 for the launch of the bitcoin futures, which it envisioned as a building block in a broader platform for trading and storing digital currencies. But the Commodity Futures Trading Commission, which must sign off on the plan, has so far declined to approve it.

“Behind the delay is disagreement between ICE and the regulator over how Bakkt—ICE’s name for the project—should be regulated. Bakkt’s initial plan to store customers’ bitcoins ran aground in February, when the CFTC told ICE such a plan would require disclosures of the venture’s business plan and a public comment period, which would have further delayed approval, people familiar with the matter said.

“Since then, the regulator and Bakkt have been discussing alternative ways for Bakkt to handle the futures contract so it complies with rules that protect customer funds.

“’We are working through the regulatory review process and are looking forward to updating the market soon,’ an ICE spokesman said, declining further comment on the regulatory discussions.

“The dispute has stalled one of the most high-profile efforts to bring cryptocurrencies into the mainstream marketplace. Bakkt has partnered with corporations such as Microsoft Corp. and Starbucks Corp. , and its long-term goal is to make cryptocurrency transparent and regulated enough to allow individuals to use it for retail purchases. The venture has raised $182.5 million from investors including ICE, Microsoft’s venture-capital arm and Boston Consulting Group Inc.”

Continue to read the full story at The Wall Street Journal.