"What a shitshow"one would say in the USA. Only yesterday LedgerX let Coindesk and Twitter announce that they were the first in the world to offer covered Bitcoin futures. But the situation could not change within 24 hours. Because how it is now said that the futures will not come - on the instructions of the CFTC.
Anti-competitive behavior and impending charges
It seems like LedgerX some too euphoric yesterday Wednesday, July 31, 2019. Because after CEO Paul Chou announced to CoindeskThe fact that the futures start is a different story today. The CFTC in the US has the whole plan one Dash through the bill made. LedgerX did not receive the necessary approval from the authority. Because a total of two permits are required: one the DCM (designated contract market) and one the DCO (derivatives clearing organization) license. And while LedgerX has already officially received the DCM license, the latter is missing.
However, the company saw it differently. The CFTC has 180 days to approve or reject a DCO license. after the 180 days passed LedgerX assumed that everything was fine:
We submitted the addition on November 8, 2018. It's been more than 180 days and we don't know why that is now.
The responsible employee of the CFTCwho doesn't want to be named, clarified:
The lack of a decision means no approval, and self-verification of a company is not an option.
We ourselves were amazed when yesterday some Tweets from LedgerX were no longer available. As it turned out, is behind the Removal of posts more than expected. How Coindesk reported, the covered Bitcoin futures will not start as promised this Thursday. The Commodity Futures Trading Commission asked LedgerX to delete their tweets. Otherwise, the company could face charges of:
- anti-competitive behavior
- Breach of duty
- and violation of regulations
With the launch of the covered Bitcoin futures LedgerX would be the first provider worldwide. But now the race for the throne starts again. It will be interesting to see whether Bakkt will be the first.
Photo credit: pixabay.com | CC0