💭 [Analysis] CFTC chair Giancarlo hints at what’s holding back Bakkt’s Bitcoin futures - Nikhilesh De

CoinDesk sat down with CFTC Chairman Christopher Giancarlo, or 'CryptoDad,' to discuss institutional movements in the crypto sphere, particularly Bitcoin ($BTC) futures exchange Bakkt. Like crypto, the CFTC operates with a set protocol, the 1936 Commodity Exchange Act. Responsibilities are divided between the federal and state government, with state governments responsible for licensing clearinghouses, among other things. Giancarlo hinted, but did not state, that Bakkt's choice to custody Bitcoin without seeking a state license until recently has delayed its approval. Other future exchanges, like CME Group or CBOE, also settle in fiat, not Bitcoin, which are more congruent with existing regulations. Another issue Giancarlo hinted at was Bakkt's choice to settle through an intermediary, ICE Clear US, rather than internally. Exposure to volatile assets like Bitcoin through clearing house arrangements have been known to frustrate other asset class representitives and could be slowing approval. Bakkt also chose to not self-certify like competing futures platforms LedgerX, CME, and CBOE because it settles through an intermediary. Adding steps to the process has led to further delays.