The U.S. Commodity Futures Trading Commission (Commission) announced today that by a unanimous vote of the Commission, it has issued an order granting LedgerX, LLC (LedgerX) registration as a derivatives clearing organization under the Commodity Exchange Act (CEA).
Under the order, LedgerX will be authorized to provide clearing services for fully-collateralized digital currency swaps. LedgerX, which was also granted an order of registration as a Swap Execution Facility on July 6, 2017, initially plans to clear bitcoin options.
The terms and conditions of the order require, among other things, that LedgerX comply with applicable provisions of the CEA, including the core principles set forth in Section 5b of the CEA, and with Commission regulations. LedgerX also must fulfill each of the representations it has made to the Commission relating to compliance with the core principles and Commission regulations.
In response to a request from LedgerX, the Commission’s Division of Clearing and Risk also today issued a letter exempting LedgerX from complying with certain Commission regulations due to LedgerX’s fully-collateralized clearing model.
This authorization to provide clearing services for fully-collateralized digital currency swaps does not constitute or imply a Commission endorsement of the use of digital currency generally, or bitcoin specifically.