One of the most anticipated new cryptocurrency trade platforms by Intercontinental Exchange (ICE) is going to probably miss its announced launched date, January 24th, once again. The parent company of the New York Stock Exchange and one of the leading financial institutions in the world, ICE, has failed to receive in-time approvals from CFTC (US Commodity Futures Trading Commission).
The delay in the launch of Bakkt is not good news for the crypto world, who believe that a platform like Bakkt, that is backed by some of the leading global financial institutions and other brands, like Microsoft, Starbucks, and BCG, can bring new life to fast depleting industry. However, it looks like – we still have to wait for a few more weeks or probably days. The good news is, we are only talking about the delay, as CFTC is all set to approve the plan. Some experts believe that the delay in necessary approvals will only delay the launch for a few days, and January 30th launch is a good possibility.
So what is the issue? Apparently, there is a delay in CFTC offering Bakkt an exemption to store Bitcoin in its own warehouse on behalf of the investors or its clients. So what is different here? Well, for other such platforms, CFTC require the company to custody client’s funds in recognized financial institutions like banks, futures commission merchants (FCM), or trust companies.
According to the sources, the exemption request is already reviewed and already passed to commision for final approval. This will take 30-day comment period, as well as two to three more days to read the comments and then put the proposal to vote.
In addition, the recent US government shutdown and a strong possibility of its further extension, the vote can be delayed further. In a week or two, the US Commodity Futures Trading Commission will provide a new launch target date.
Simply put, this is a second delay after the initial launch date in December was postponed to the last week of January. However this time, there is a good chance that the delay will not extend beyond a week’s time.