Bakkt acquired the needed approval from the US regulators to start trading physically-settled bitcoin futures which is a move many believed will provide greater legitimacy to the crypto industry before the institutional investors as we are now reading in the coming altcoin news below.
The Intercontinental Exchange’s subsidiary announced back on Friday that the New York Department of Financial Services has provided Bakkt the clearance to acquire a New York state trust charter. This will provide the exchange of permission to start operating as a limited liability company which means it could also custody bitcoins for physically delivered futures. The new service will be launched on September 23rd. According to their blog post, Bakkt CEO Kelly Loeffler pointed out that the Bitcoin futures contracts have already received approval from the Commodity Futures Trading Commission via the self-certification process. Bakkt will now introduce an institutional-grade custodial solution named the Bakkt Warehouse and will meet the highest standard of oversight. Loeffler noted:
“Bakkt bitcoin futures contracts will not rely upon unregulated spot markets for settlement prices, thus serving as a transparent price discovery mechanism for the benchmark price for bitcoin. The importance of this differentiator is only amplified by reports of significant manipulative spot market activity, and other concerns such as inconsistent anti-money-laundering policies and weak compliance controls.”
The futures contracts will now be exchange-traded on the ICE futures while ICE Clear US will provide clearance. This marks the first time physically-settled bitcoin futures contracts will be listed on the regulated exchange. The move also provides comfort for investors who wanted to speculate on Bitcoin but now have other plans owing to higher risks, market surveillance and lack of compliance associated with the global cryptocurrency exchanges. Loeffler pointed out after Bakkt acquired the approval:
“Providing a trusted ecosystem is our first objective. To do that we are setting a higher standard, including an institutional compliance and anti-money laundering program, settlement prices that are distinct from unregulated spot prices, comprehensive market oversight, a guaranty fund contribution, and insurance.”
As we read in the reports in the latest cryptocurrency news, Bakkt had plans to launch its services in December 2018 after they get the CFTC approval but the delays prompted it to self-regulate the contract. Bakkt announced later that they will begin accepting users in order to test Bitcoin futures contracts on July 22.
New Jersey Is Regulating Cryptocurrencies At State Level
“People see and hear about [Bitcoin] in their day-to-day lives, but most are not quite sure what it is. We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey.”The bill apparently requires crypto companies to disclose their terms and conditions for consumer accounts. As such, they will be protected by the Federal Deposit Insurance Cooperation (FDIC) as are traditional bank account holders. The US crypto regulation news also show that anyone applying would need to provide a schedule of fees and any information regarding the risks of investing in digital assets.
“With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency.”This is what is new in the US crypto regulation news. What is important now is that with the introduction of a state-level licensing scheme, New Jersey would join its neighbor New York in requiring crypto firms to obtain special permission to operate - something that has been known as the BitLicense which the regulators in New York introduced in 2014.
Cyprus SEC Embraces Blockchain Despite Unclear Crypto Regulation
Russia Decides To Outlaw Crypto As Means Of Payment
"A decision was made following a meeting in the government to establish a ban on the issuance and use of cryptocurrencies as a means of payment," the letter read.In the same letter, Chernyshenko said that the FSB insisted that some of the crypto-related proposals should be included in Russia's bill on digital financial assets, which is very likely to pass through the parliament this spring. If this occurs, we can see how Russia decides to ban cryptocurrencies. But before that, the FSB wants to identify all crypto owners in the country. For failure to comply with the upcoming law, the FSB is going to impose administrative and even criminal liability. While the FSB and the Bank of Russia reached an agreement on how to regulate crypto, the two departments would not concede on their intentions to independently influence the regulatory process. So far, the bank has not responded to the FSB proposals. What's also interesting in the altcoin news is that a BBC investigation from earlier this month showed that the FSB could be behind the disappearance of $450 million worth of crypto from an exchange platform. Meanwhile, the action on the market is the same and the market cap is at $280 billion while BTC's dominance is at 62.9%.
More Crypto Regulation Suggested By Michael Bloomberg
‘’Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, Bitcoin and initial coin offerings, there’s also plenty of hype, fraud and criminal activity. Mike will work with regulators to provide clearer rules of the game ‘’The document wants to establish consumer protection and to clarify the taxation rules by creating a framework for initial coin offerings by determining which of the tokens are legal securities. He also calls for more regulations for banks and other financial institutions. The proposal is short but notable as the other leading candidates have remained silent on this matter. The other presidential candidate Bernie Sanders made no statements about crypto nor Joe Biden or Elizabeth Warren has commented. Trump is still not a fan of cryptocurrency and has made no calls for regulation. More discussion about the blockchain development could be sparse among the presidential candidates but the topic will not go away. Some of the other branches of government have been addressing the impending wave of crypto adoption and the Federal Reserve Chairman Jerome Powell discussed Bitcoin before the entire House Financial Services Committee. The fact that Bloomberg wants to address blockchain assets is not surprising. He founded one of the most successful financial companies that specialize in software and technology. There’s sure no doubt that he is familiar with crypto and its potential. If the crypto market continues to recover, more candidates will make new positions on how the federal government should approach the blockchain development. There is no doubt that the next president will have to recognize the crypto potential and the change of the entire economic landscape.
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