CFTC Chair: Need of new legal procedures for Blockchain Tech testing

CFTC Chairman, Christopher Giancarlo, has called for new legal procedures for Blockchain Tech testing. As per his remarks, the agency is now restricted from directly participating in trials of Blockchain proofs-of-concept (PoC).

26 July, AtoZ Markets – The Chairman of the US Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, has stated that the regulatory body is planning to look into the Blockchain technology. He has spoken during a Congressional hearing this Wednesday. 

CFTC Chair: Need of new legal procedures for Blockchain Tech testing 

Mr. Giancarlo has highlighted that the agency needs the appropriate procedures in place that would allow it to assess innovative Blockchain technology. The CFTC plans to examine the technology behind the Bitcoin for potential future use cases. 

The hearing “Examining the Upcoming Agenda for the CFTC” has been organized by the House Committee on Agriculture. During the meeting, Mr. Giancarlo was asked by Congressman Austin Scott to outline the goals of LabCFTC, which is a special center for “engagement with the fintech innovation community” that has been established by the agency in 2017. 

Mr. Giancarlo has stated:

 “LabCFTC is our front door into these new regulatory fintech developments in the marketplace, and it’s so important to us to be able to understand these innovations that are coming down the pike so fast.”

He has also been asked about the importance of the CFTC Research and Development Modernization Act. The act has been introduced by members of the Agriculture Committee on June 14. CFTC Chairman has stated that there is a clear need for a legally sound and effective method of sharing information between the agency and fintech innovators, “especially in the area of the blockchain.”

CFTC Chairman is Positive on Blockchain

As per Mr. Giancarlo, the CFTC is now limited from directly participating in trials of Blockchain proofs-of-concept (PoC). This is due to the fact that the free exchange of data between private startup companies and the CFTC would be legally regarded as a gift. This is something that the CFTC is prohibited from doing. 

However, CFTC head has also noted that paying private companies for the information can be time-consuming. Therefore, the CFTC R&D Modernization Act would enable the agency to take the direct part in innovative Fintech projects. The chairman has further stated:

“We’re falling behind. Just two days ago, the Bank of England announced that they’re putting in a new bank-to-bank payment system in the U.K., and it’s going to be blockchain-compliant. And they’ve had the last four years (…) to participate in all these blockchain beta tests that we’ve not been able to participate in. (…) So I feel like we’re four years behind, because we do need to test it, (…) we need to see how it can help us do a better job as a regulator.”

Earlier this February, the US Securities and Exchange Commission (SEC) and the CFTC have held a hearing concerning the cryptocurrency market. During the hearing, Mr. Giancarlo has expressed his positive stance on Blockchain. 

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