CFTC Approves Bitcoin Startup as Temporary Swap Execution Facility

The CFTC approved an application by LedgerX LLC ("LedgerX") for temporary registration as a swap execution facility ("SEF") pursuant to Part 37 ("Swap Execution Facilities") of the CFTC regulations. The CFTC stipulated that prior to listing a product for trading, LedgerX must comply with the submission requirements for certification under Part 40.2 ("Listing Products for Trading by Certification") or seek approval under Part 40.3 ("Voluntary Submission of New Products for Commission Review and Approval") of the CFTC regulations. The CFTC also mandated that LedgerX should comply with the submission requirements for certification under Part 40.6 ("Self-Certification of Rules") or seek approval under Part 40.5 ("Voluntary Submissions of Rules for Commission Review and Approval") of the CFTC regulations if LedgerX seeks to implement a new rule.

The CFTC promised that, moving forward, it would review LedgerX's SEF application to "assess whether it is fully compliant with the requirements of the CEA and the CFTC's regulations applicable to SEFs."