Bakkt (NYSE:BKKT) recently had the opportunity to submit a statement for the “Connecting Communities: Building Innovation Ecosystems Across America” hearing, held by the House of Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion.
At Bakkt, they believe that “a regulated and transparent crypto market can enhance financial inclusivity by connecting communities and lowering barriers to entry for those looking to participate in the local and global economies.”
According to Bakkt, a clear and comprehensive regulatory environment, “for which Bakkt continues to advocate on Capitol Hill, can provide higher levels of security for businesses and customers, while allowing for responsible and compliant crypto players—like Bakkt—to develop better and broader use cases for these technologies.”
Since its inception, Bakkt has aimed “to serve as an example of how to engage conscientiously in the crypto industry.”
They support the Committee’s work and look forward to their continued engagement “with Subcommittee Chairman Hill, Congress, the SEC, CFTC, NYDFS and other federal and state regulators as a fuller regulatory framework for the industry is developed.”
Bakkt Holdings, Inc. Statement for the Record
Bakkt Holdings, Inc. appreciates the opportunity to submit the following testimony in conjunction with the Subcommittee’s hearing entitled “Connecting Communities: Building Innovation Ecosystems Across America.”
As a digital asset platform focused on the development of safe, secure and regulated financial service technology, they share the Subcommittee’s goal of “ensuring that any reforms made to the digital asset sector can accomplish the goal of enhancing financial inclusiveness.”
But they also must honestly “understand that—contrary to the view of many policy makers and the public—the cryptocurrency market exists, or should exist, for more than just providing a place for risk takers to speculate on the value of cryptocurrency. It is the burden of responsible participants in these markets to articulate a better and broader use case for these technologies and markets and how, within the appropriate regulatory environment and in a safe and secure manner, they can serve important societal goals relating to reducing costs in, and increasing access to, the financial system.”
Bakkt’s Approach to Compliance:
Founded in 2018, Bakkt builds solutions “that enable businesses to grow with the crypto economy. Through institutional-grade custody, trading, and onramp capabilities, our clients leverage technology that’s built for sustainable, long-term involvement in crypto. ”
They offer ways to activate crypto capabilities “via software-as-a-service (SaaS) and application programming interface (API), so that businesses can select the option that’s best for their strategy and their customers.”
Their institutional-grade technology platform is “at the core of everything we do. It is secure and licensed, born out of our heritage with our former parent company, Intercontinental Exchange, Inc., which operates regulated exchanges and clearinghouses throughout the world.”
Their compliance measures, controls and rigorous risk management practices are at the core of how they operate.
From the beginning, they have separated their custody and exchange functions to minimize potential conflicts of interest.
They hold two BitLicenses and “a limited-purpose trust charter from the New York Department of Financial Services, as well as money transmitter licenses throughout the US. As a public company, they comply with SEC reporting obligations, including publicly disclosing our audited financial statements each year. Since its inception, Bakkt has aimed to serve as an example of how to engage in the digital asset space in a responsible manner, through upholding the highest standards of transparency, security and compliance.”
Bakkt appreciates the opportunity to “provide testimony regarding how digital assets can better connect their communities and lower barriers to entry for those wishing to participate in both the local and global economy.”
Bakkt stands ready to “assist the Subcommittee in providing feedback and perspective on emerging legislative and regulatory issues pertaining to digital assets.”
For more details, check here.