In a keynote address, the US Commodity Futures Trading Commission (CFTC) chairman J. Christopher Giancarlo said that emerging technologies such as blockchain, among others will decentralize markets.
While speaking at the FinTech Week which was hosted at the Georgetown University Law School on Wednesday, the chairman during the course of his speech said, “In enforcement, new machine-learning based surveillance tools could sniff out patterns of likely illegal trading activity or attempts to manipulate markets for enforcement analysis. These tools will become even more paramount as emerging blockchain technologies seek to decentralize markets or disintermediate traditional actors. It is critical that we have the ability to keep pace with those who attempt to defraud, distort, or manipulate.”
He added that the future is not far when rulebooks will be digitized, compliance will be increasingly automated or built into business operations through smart contracts, and regulatory reporting will be satisfied through real-time DLT networks.
CFTC has been one of the few regulatory bodies in the United States of America which has been very positive on technologies such as blockchain as well as cryptocurrencies. In the last month, Giancarlo had said, “We are very focused on fraud and manipulation in the crypto space and very active at it.”
When he was asked on whether the US is not very pro innovation by the interview, the chairman replied, “And yet it is the United States that has gone forward with the very first bitcoin derivatives and futures with the CME and bitcoin options and bitcoin clearing. We are ahead of the world in that. However there are some other areas where we need to take a more thoughtful approach.”
Apart from that, back in July this year, the regulatory body had also requested the Congress to not be too hasty while classifying cryptocurrencies. The statement was specifically directed towards U.S. House Committee on Agriculture, which was seeking testimony on cryptocurrencies and digital assets.
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