The United States Commodity Futures Trading Commission will still be allowing New York-based fintech firm Tassat to proceed with its Bitcoin swap contracts before it gets the usual approval for reinstatement.
According to a Sept. 15 statement from the CFTC’s Division of Market Oversight (DMO), the regulatory body will not stop Tassat from launching a swap execution facility (SEF) in Q4 2020, even after the firm failed to renew its registration following 12 consecutive months without trading. Today’s action gives Tassat one month to file for reinstatement of its registration and will protect the firm from legal action for beginning trading before it receives CFTC re-approval.
“DMO will not recommend the CFTC commence an enforcement action against Tassat for failing to reinstate its SEF registration,” the DMO stated. The regulatory body’s decision extends to Tassat listing certified Bitcoin (BTC) swap contracts and participants who trade the contracts.
After applying to become a regulated crypto derivatives exchange with the CFTC in November, Tassat did not launch its swaps exchange by Aug. 1, when the regulatory body labeled the firm as “dormant.” Tassat attributed the delays to the current pandemic, and requested to be exempt from applying to reinstate its status as an SEF.
The CFTC’s decision grants Tassat relief from the reinstatement requirements, and brings it closer to launching a crypto derivatives exchange with full regulatory oversight. The fintech firm reportedly hopes to list physically-delivered BTC derivatives for institutional investors starting in Q4 2020.
Regarding the news, Kevin Lupowitz, COO of Tassat, told Cointelegraph: "We appreciate the CFTC's approval of our petition as we finalize our launch timeline. We look forward to sharing more details as the launch approaches."
Updated Sept. 16: This article has been updated to reflect the nature of the relief in the CFTC’s announcement.