Cryptocurrency

How The US Government Shutdown is Affecting Crypto Progress

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As the natural and static environment in Washington extends into its record-breaking fourth week, the closure of the Securities and Exchange Commission and the Commodity Futures Trading Commission has put key developments in crypto on hold.

These ‘on-hold’ developments particularly include the approval and introduction of products and services like cryptocurrencies.

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The introduction of Bakkt’s bitcoin futures market was postponed to some degree by the organization’s failure to anchor approval before Dec. 22, last year, when the shutdown actually started.

The platform made by Intercontinental Exchange is also in a holding stage. It will be on hold till the regulators do not open a 30-day open comment period. Another launching date for the platform was set for Jan. 24, but it is yet to be officially declared.

This absence of approval has not affected Bakkt from developing its platform, as reported by the organization. The organization was purchasing parts of Rosenthal Collins Group (RCG) to reinforce its regulatory compliance.

The CEO of Bakkt said that the company made extraordinary progress in December, last year and it will continue to allow customers onboard as it anticipates the green light from regulators.

Here are other businesses which are in limbo:

ErisX which is a crypto trading platform which so far has been able to raise $27.5 million from investors. This company is also waiting for government employees to return to the job.

The platform’s objective is to control and manage the futures market and clearinghouse. But it would require approval from the CFTC to came plans come true.

The CEO of the startup told media that the bond his company shares with the CFTC is positive and productive too. He further said that amid this government shutdown, the company has not stopped working on its platform development, the work is very much in the process.

The company is expecting this shutdown to get settled soon so that it can reconnect with the concerned department for the approval. As regulatory activities get slowed down and eventually stops, a crypto industry is giving more attention to the activities on Capitol Hill, where regulators and Senate are available for business.

Kristin Smith, at Blockchain Association executive, said that they have been gaining real ground connecting with regulators and lawmakers. However, the shutdown has put the handbrake on a few of those discussions.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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