LedgerX has received temporary approval from the US Commodities Futures Trading Commission to act as a swap execution facility.

The bitcoin options startup applied for licensure last year and has received backing from Lightspeed Venture Partners and Google Ventures.

LedgerX CEO Paul Chou said that despite the temporary approval, the exchange isn’t set to launch until further licensure is acquired.

He said of the temporary approval:

“This is a first step, and is positive progress, but it is just one milestone toward our ultimate goal. Our mission is still to obtain a derivatives clearing organization license (DCO) to operate a federally regulated bitcoin derivatives exchange and clearing house. At this time, we do not intend to launch with only a SEF license.”

According to a letter sent to LedgerX by the CFTC, the agency will conduct further inquiries into the company as part of its approval process.

“As a next step, the Commission will review LedgerX’s SEF Application to assess whether it is fully compliant with the requirements of the CEA and the Commission’s regulations applicable to SEFs,” the agency wrote. “During such assessment, the Commission may request from LedgerX additional information in order to make a determination whether to issue a final order of registration.”

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