Following last week’s CFTC and SEC hearing, the United States Commodity Futures Trading Commission's (CFTC) Technology Advisory Committee hosted panels on Wednesday to review cryptocurrencies, blockchain, and future regulations.
The United States continued to take a hands-off, “do no harm” approach, with CFTC member and policy advisor Brian Quintenz opening the hearing with the following statement:
"The CFTC should not attempt to make value judgments about which new products are worthwhile and which are not – the markets, investors, and consumers need to decide that for themselves.”
Instead, the committee has called for and approved the creation of two subcommittees - one aimed at blockchain technology and its wider applications, and another focusing on cryptocurrencies and their impact on the financial markets.
The CFTC is pushing for self-regulation by members of the cryptocurrency community who will serve in these new subcommittees. Others from the private sector raised concerns that it will be difficult to ensure self-regulation is “fair.”
One thing is clear: all stakeholders from both the public and private sectors believe that regulation is required to ensure the financial sector adopts the technology. CFTC’s Deputy Director of Market Oversight Dan Busca even believes that blockchain could be used as a potential tool for regulators:
"The evolution of DLT could allow regulators to access data seamlessly every time a trade is posted on a particular blockchain without the need for human intervention or intermediaries.”
Busca claimed that the move to distributed ledger technology would make the CFTC more “efficient”.
Like last week’s hearing, the news from the hearing has been viewed as overwhelming, positive and supportive, by the crypto community, and has helped add fuel to the current market recovery being driven by Litecoin and Bitcoin currently.