CFTC Chairman Thinks Blockchain Technology Has Potential for Future Use Cases

CFTC Chairman Thinks Blockchain Technology Has Potential for Future Use Cases

CFTC Chairman Thinks Blockchain Technology Has Potential for Future Use Cases

The Commodity Futures Trading Commission (CFTC) chairman, Christopher Giancarlo, has demonstrated its keenness towards the blockchain technology. The United States commodities regulator was making its stance before a Congressional hearing wherein he stressed the need for proper procedures. He believes that this could allow the regulator to find out the innovative nature of the technology that could be used for any potential use cases in the future. There has already been an opinion that this new age technology is the most disruptive one for a decade.

Dedicated Hub

The House Committee on Agriculture has convened a hearing that is entitled “Examining the Upcoming Agenda for the CFTC” wherein the chairman was offering his views. A Congressman, Austin Scott, has asked Giancarlo to explain the objectives of LabCFTC, which is a dedicated hub. The agency has established the hub last year specifically for engaging itself with fintech innovation community. There were already enough reports suggesting that blockchain technology could be used beyond the fintech sector due to its decentralized concept.

During the hearing, Giancarlo indicated that LabCFTC is its front door for entering into new regulatory fintech developments. Therefore, he stressed the importance of understanding those innovations that are taking place in the marketplace at a rapid pace, according to a cointelegraph report. He was also asked to elaborate on the significance of the regulator’s Research and Development Modernization Act. This came on the back of launching it by a number of Agriculture Committee members on June 14.

Responding to it, the Chairman disclosed about the requirement of a sharing information process that is not only fast but also legally sound. He felt it necessary between the fintech innovators and the organization especially when it comes to the blockchain technology. He pointed out that it could not take part directly in any trials of proofs-of-concept based on blockchain technology since it was not allowed to do so.

The reason behind it is that any free exchange of information with the private startup would be termed it as a gift. It was because of this reason the agency was prohibited from doing it. However, the agency is trying to pay for information that is not feasible citing the time-consuming process. Therefore, the act would enable it to participate directly in any innovative projects from fintech without any payment. In the process, there will not be any violation of the laws.

Falling Behind

Giancarlo indicated that “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 gonna 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.”

During the earlier hearings too, Giancarlo has expressed his positive stance on the new age technology. He pointed out during a hearing in February that it would benefit sectors like logistics, agriculture, social services, charities, and financial institutions.