As reported in a recent blog post by LedgerX, the former director of the CFTC (Commodity Futures Trading Commission), Chairman J. Christopher Giancarlo, intentionally hindered the work of LedgerX for personal reasons.
The problem would have arisen with the review of registrations, Derivatives Clearing Organization (DCO).
In fact, according to the source, the whole thing would result from a post in their blog made by LedgerX’s CEO, Paul Chou, and how this would affect the decision of the former director who would thus postpone the DCO request, already dealt with in November 2018.
Furthermore, according to the source, there would have been problems with the LedgerX documentation, which had been asked for an insurance and a SOC 1 Type 2 evaluation, indispensable documents for the continuation of the approval and which were promptly provided by the company but, as mentioned, these were lost by the CFTC staff, perhaps intentionally.
Beyond the problem with the paperwork, easily circumvented by requesting the new documentation, the protracted decision without any apparent reason goes against the Commodity Exchange Act (CEA) and would have caused considerable damage to LedgerX which has thus had a huge delay in the launch of crypto derivatives, losing the leadership of the launch that instead Bakkt has had.
Bakkt was able to release their futures based on physical bitcoins a few weeks ago, though with some difficulty and hiccups as the price of bitcoin has then fallen quite quickly.
In fact, following the launch of the Bakkt futures, the price of bitcoin has not risen, contrary to what was expected, but rather fell back to below the $10,000 threshold to remain within the bearish triangle.