According to the back-to-back panels hosted by the Technology Advisory Committee of the CFTC regarding cryptocurrencies and blockchain, as well as the regulation regarding the same, influential personalities from the private and public sectors raised concerns regarding the markets.
According to the back-to-back panels hosted by the Technology Advisory Committee of the CFTC regarding cryptocurrencies and blockchain, as well as the regulation regarding the same, influential personalities from the private and public sectors raised concerns regarding the markets. Other issues of concern that came to attention include new technologies regulation as well as the role played by regulators in their development. Apparently, the event was fruitful, as the committee agreed to the formation of two subcommittees to handle cryptocurrencies and the distributed ledgers’ broader application within the finance sphere. Following the event, Brian Quintenz had to advocate for self-regulatory efforts on cryptocurrencies.
Brian emphasized that the CFTC has no business making value judgments regarding which products were or were not worthwhile, as this was for the investors, consumers, and markets to decide. Panel participants generally agreed that there was a need to introduce new regulations regarding the use of technology on the infrastructural front of the financial sector. Deputy Director Dan Busca, who is in charge of the organization’s Market Oversight division, added that, in its visions for the future, regulatory oversight needed to include DLT as part of its improvement or development efforts. He also suggested that regulators could use blockchain as a potential regulation tool.
DLT’s evolution could allow the seamless access of data by regulators whenever a given blockchain features trade postings without necessarily requiring the intervention of humans or any other intermediaries. Busca added that the result would increase the efficiency of the CFTC. He also explained the manner in which market watchdogs would be fed critical real-time information and use a distributed network to operate own nodes and make an informed decision.
Position of the Private Sector
Apparently, private sector committee members had mixed views and opinions on the regulation of blockchain and cryptocurrency, as well as how far regulators can go to ensure regulation. R3’s MD Charley Cooper urged regulators to intensify their involvement in these industries to tighten rules governing the cryptocurrency and blockchain niches. He expressed his opinion and passionately asked the U.S. regulators and concerned parties or government agencies to become more actively involved in regulatory matters than they currently are. He also brought their attention to the fact that some federal governments across the globe were fast outpacing the American government. This is becoming a serious concern that cannot be ignored.
The issue of expanding regulation concerning cryptocurrency and blockchain has also baffled senior researchers and research fellows like Brian Knight of Mercatus Center, a prime division of George Mason University. His concern over the growing role of regulators in the two industries was that such intensive involvement of authorities and regulators could be a disaster waiting to happen. His other concern was how to have the regulator serving as some sort of consultant in a fair manner.
The CFTC’s TAC, through a decision to create specialized subcommittees, demonstrated the need to explore the technologies on an ongoing basis. The TAC expects these subcommittees to impact trading in a transformative manner, and consequently markets and later the whole world’s financial system.