Allegations Against a Former CFTC Chair
It looks like LedgerX is bringing some serious drama to the cryptocurrency scene. They’ve accused former CFTC chair Christopher Giancarlo of holding up their approval process for an amended Derivatives Clearing Organization (DCO) registration, apparently motivated by personal bias against their CEO, Paul Chou. Yes, you read that right. It’s like a soap opera, but with more blockchain and fewer ridiculous plot twists.
The Accusations Unfold
According to a report from Coindesk shared on September 28, LedgerX is alleging that Giancarlo’s delays align suspiciously with their CEO’s blog post criticizing how larger firms were treated more favorably. In a letter from early July, LedgerX stated,
“This unreasonable delay… is related to the Chairman’s animus towards a blog post written by our CEO.”
Sounds like someone might be taking their critiques personally!
Not Just a Basic Complaint
But wait, there’s more! The drama thickens as LedgerX claims Giancarlo explicitly told one of its board members that he planned to revoke their DCO order due to this very blog post. Talk about holding a grudge! Dave Chou shared that Giancarlo’s motives seemed tangled up with his own ambitions—particularly in relation to the Bakkt approval that was closest to spotlighting Giancarlo’s legacy.
Audit Interference? Seriously?
It’s not just blog post beef; LedgerX claims shady dealings regarding their audits, with reports that CFTC staff allegedly attempted to meddle with LedgerX’s independent audit process. Can you imagine auditor satisfaction surveys after hearing this? Chou recounted that auditors told him they “had never seen this kind of thing before.” It seems they might want to rethink their career choices if they’re seeing “drama” like this every day.
Competitive Pinch Points
Are you ready for some intrigue? LedgerX’s struggle is compounded by the CFTC forcing them to report data through the ICE Trade Vault. This setup happens to be run by ICE, which consequently has launched their own competing service, Bakkt. Talk about an epic twist of fate! And let’s not forget Chou’s frustration with being excluded from CFTC’s Technology Advisory Committee—he expressed his feelings over a lack of transparency:
“They didn’t tell me why, but I think it’s pretty obvious why they did it.”
Stalled Prospects
To put this saga in perspective, LedgerX’s application for the Bitcoin futures product still hasn’t been approved after over 300 days! The CFTC has 180 days to either approve or decline applications, which begs a few questions: Is there a hidden agenda behind these endless delays? And will we ever see the dramatic resolution of all this intrigue?
