The crypto community is getting some measure of positive attention from one U.S. regulator in the form of the United States Commodity Futures Trading Commission (CFTC).
Today in comments made at the 44th Annual International Futures Industry Conference, CFTC Chairman J. Christopher Giancarlo talked about the change that it’s going to take to work with blockchain instead of against it. Appointed in 2014, Giancarlo was previously chair of the American Wholesale Markets Brokers Association.
Citing “the disintermediation of traditional actors and business models,” Giancarlo suggested that the CFTC’s role should be to “provide an internal and external technological focus.”
“Internally, it means explaining technology innovation to agency staff and other regulators and advocating for technology adoption,” Giancarlo said, according to Marie Huillet’s reporting in Cointelegraph this morning. “Externally, that means reaching out and learning about technological change and market evolution, while providing a dedicated liaison to innovators.”
Giancarlo also referred to international collaboration with regulators around the world, for example, in England and Australia, as well as East Asian hubs like Singapore.
All of this points to a movement toward accepting the reality of blockchain and the cryptocurrency models that it supports.
Yesterday, we talked about how adamantly opposed to cryptocurrency use the global Basel committee seems to be. Some global regulators are decidedly not ready to accommodate technologies that seem to be overtaking traditional models.
Others, like Giancarlo, are getting ready to welcome them with open arms. Officials at the World Trade Organization have also been vocal about support for the idea of blockchain cryptocurrencies, while leaders at the International Monetary Fund have, in the past, been more circumspect, for example, in analysis of Maltese projects innovating in that country.
“The increasing number of financial entities under supervision, the rapid development of new products, the evolving regulatory environment and the tightening of the labour market have put the Malta Financial Services Authority under considerable strain,” wrote IMF officials, according to January reporting, while indicating that blockchain applications there could raise the chances of money laundering.
Which approach makes the most sense? Back coins or assimilate them?
To most cryptocurrency investors, it’s going to be the latter. If you are involved in the cryptocurrency sector and have coin holdings in your portfolio, let your voice be heard. Advocate actively for the kinds of technological innovation that will create a collaborative and symbiotic financial world – not a colossal struggle pitting national fiat currencies against the coin.