Due to the inability of the CFTC to test and research blockchain technology with outside organizations, Christopher Giancarlo feels they are “years behind” other countries and regulators.
The CFTC Chairman, Christopher Giancarlo, has announced that because the CFTC is held back by law, its ability to test, demo, and generate proof-of-concepts, regarding emerging technologies; he feels that they are years behind other countries and regulators.
“Specifically, the CFTC lacks the legal authority to partner and collaborate with outside entities engaging directly with fintech and innovation within a research and testing environment, including when the CFTC receives something of value absent a formal procurement.” -Christopher Giancarlo
Under current law, the CFTC cannot operate a node run by banks, because the data received is legally considered a “gift” and they cannot rent a node without proper approvals and bills passed by Congress.
He compares the Bank of England with their ability to run blockchain tests and their ability to become more comfortable with the new technology to what the CFTC is allowed to work with.
“The BofE had the last four years…to participate in all these blockchain beta tests that we have not been able to participate in and they’ve been able to get comfortable with the technology and now they’re incorporating it. I feel we’re four years behind because we do need to test it, we do need to understand it so we can do a better job as regulator before I then come to Congress and say we need money to build something.” -Christopher Giancarlo
In an attempt to remedy the issue, a new legislation put forth by Austin Scott would allow the CFTC to collaborate with outside organizations on financial and compliance technology. The CFTC chairman feels this would “greatly enhance the Commission’s ability to keep pace with emerging technology, explore its potential, and facilitate its adoption”.
Throughout the past year, the CFTC has remained positive and bullish on this space, advocating for logical and smart regulations.
“We are witnessing a technological revolution. Perhaps we are witnessing a modern miracle.” -CFTC Commissioner, Rostin Behnam
“We must crack down hard on those who abuse our young enthusiasm for bitcoin and blockchain technology…We owe it to this new generation, to respect their interest in this new technology with a thoughtful balanced response, not a dismissive one.” Christopher Giancarlo