According to J. Christopher Giancarlo, blockchain forms America’s national interest. The chairman of the commodity futures which is a trading commissi
According to J. Christopher Giancarlo, blockchain forms America’s national interest. The chairman of the commodity futures which is a trading commission offered the remarks at the gathering of government technology executives. The meeting was held in the Washington DC where several issues concerning the blockchain technology were discussed.
The blockchain industry has been on record encouraging regulators and different government agencies to embrace the technology. The argument has been from the blockchain developers for several years. The remarks were made in a meeting which was attended by more than 270 members from over 40 United States government agencies. The leaders noted the argument, and it means a lot when taking into consideration the future of the technology considering many leaders of the organization were in attendance.
Giancarlo admitted that the distribution of ledger as well as the blockchain technologies for the basis of tackling different foundational challenges in the financial infrastructure in the United States.
He continued to argue that everything has been digitalized. But, the part remaining to be digitalized is the regulation. He admits that the use of analog regulation to regulate a digital platform forms a challenge. According to him, digital markets should be regulated by digital regulations.
Giancarlo stresses that it is necessary for the US regulatory structures to catch up with the digital economy through coming up with necessary digital regulations. He further argued that the government agencies should go beyond understanding the blockchain and utilize it in the regulatory settings.
Some of the ways he argues the government agencies can tackle the problem involve reporting surveillance and improving efficiency in the clearing and settlements of different processes. The technology can allow the transparent flow of information as a way of benefiting the American public.
One of the examples which Giancarlo gave is the use of distributed ledger system to implement the rules set by Dodd-Frank financial reform law. The law was passed in 2010; the regulation was created to compel the financial institutions to report swap trade information to the central repository.
The introduction of the technology intends to provide transparency in the financial institutions so that they can expose the technology to other banks and better assess the systematic risk. Due to technological limitations, the initiative of the blockchain technology would solve many issues in the state agencies.
Giancarlo mentions that blockchain ability cuts through the financial systems complexity which has been there in the past. The statement made at the event gave a more detailed view of different ways the technology can be utilized in the digital world.
With the optimism he had, he noted that digitization of the financial markets could be a delicate balance. It involves investor and innovation protections.
The current enthusiasm of cryptocurrencies should not blind the investors to make risky decisions. The market requires regulations. For instance, the CFTC found certain crypto tokens were regarded as commodities, and it later granted them cryptocurrency derivatives.
He concluded that the rules were made for the market and not the technology hence they need to be updated.