CFTC approves LedgerX physically-delivered BTC futures for retail traders

25 Jun, 2019 | Updated: 25 Jun, 2019
by David Robb
Breaking News
CFTC approves LedgerX physically-delivered BTC futures for retail traders

The Commodity Futures and Trading Commission (CFTC) has given approval to LedgerX to offer physically-delivered Bitcoin futures. This could be a major step forward for crypto regulations in the U.S.

Based in New York, LedgerX is a crypto asset management platform that has offered a number of different BTC trading options since its launch back in 2014. 

According to a CFTC document, commission staff "reviewed LedgerX's application for designation as a contract market, including LedgerX' s rules, and conducted an onsite technical evaluation of LedgerX's operational capabilities to evaluate whether LedgerX was in compliance with the core principles and corresponding regulations". This test was passed successfully, and Ledger X can offer BTC derivatives contracts to retail traders.

According to a blogpost from LedgerX, the new license means that "both retail and institutional customers can interact in the same transparent marketplace...We can now provide a robust market for a much broader audience, providing access to individuals who want to get exposure to the fast-growing crypto investment sector via derivatives products that they could not access in the past."

On-boarding will apparently be gradual, as the company has a long waiting list of potential retail clients who want to make use of the system, and the technology will need to be monitored and tested thorougly.

Physically-delivered Bitcoin futures will also be a key feature of Intercontinental Exchange's upcoming Bakkt project. Although it is still on course for rollout in 2019, the ICE's crypto subsidiary has had its launch delayed due to issues with regulatory approval from the CFTC. The fact that the commission has now give the green light to LedgerX's BTC derivatives could be a positive sign for the future of Bakkt.

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