The Technology Advisory Committee of the Commodity Futures Trading Commission (CFTC) met today and held roundtable discussions on cryptocurrencies, blockchain and regulation.

The meeting brought together influential figures from the public and private sectors, with participants mainly raising issues related to markets, the regulation of new technologies and the role of regulators in participating in technology development.

Indeed, the event had a tangible result early on – just before the break, the committee approved the creation of two subcommittees, one devoted to cryptocurrencies and the first one. other to the wider application of ledgers distributed in the financial area

The event saw Brian Quintenz defend self-regulatory efforts around cryptocurrencies, a position he would have expressed at a press conference before the event.

Quintenz reiterated this position in his opening remarks and also told participants that "the CFTC should not attempt to make value judgments on new products that are titles."

"Markets, investors and consumers have to decide for themselves," he said. Quintenz, however, also supported the Commission's efforts to prevent fraud and market manipulation.

Regarding the blockchain, several panelists – including those from the ranks of the CFTC itself – said that new regulations were needed to accommodate the technology.

"Futuristic views of regulatory oversight need to incorporate DLT, which continues to improve and mature," said Dan Busca, deputy director of the CFTC's Market Surveillance Division. "Trying to adapt a system to regulation after the fact is often expensive and inadequate."

Busca later suggested that this chain of blocks could be a potential tool for regulators, pointing out how market watchdogs would exploit their own nodes on a distributed network and receive real-time information.

"The evolution of DLT could allow regulators to access data seamlessly each time a transaction is posted on a particular blockchain without the need for human intervention or re-entry. # 39; intermediaries; " this, in turn, would make the CFTC more "agile and efficient," according to Busca.

Private Sector Perspective

Committee members from the private sector expressed mixed views on cryptocurrency and blockchain regulation and the extent to which regulators should be involved.

Charley Cooper, Managing Director of R3, called on regulators to get more involved in the blockchain and cryptocurrency industries.

"We are asking as passionately as possible for US regulators and members of government agencies to become more active than you already are," he said. "I can tell you that there are federal governments in the world that far exceed the US government, and that's a concern."

Brian Knight, senior researcher at the Mercatus Center at George Mason University, raised concerns about the increasing role of regulators in cryptocurrency and blockchain, and said such involvement could to prove problematic.

"If we want the regulator to serve as a consultant, how can we make sure it's fair?" Knight questioned.

And, as demonstrated by its decision to form specialized cryptocurrency and blockchain subcommittees, the Technology Advisory Committee has indicated that its exploration of technologies will be ongoing and that it is expected to have a "transformative impact on trade, markets and the entire global financial system. "

Commission Panel and Microphone Image via Shutterstock

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