BlockchainBusiness & Finance

CFTC Chair Suggests Government to Look into Blockchain Technology

After observing the solid growth in cryptocurrrency, Chairman of the U.S. Commodity Futures Trading Commission (CFTC) Christopher Giancarlo , addresses Congress with the benefits that could be gained by blockchain technology.

Upon inquiry by Congressman Austin Scott to explain the goals of LabCFTC, Christopher Giancarlo said:

LabCFTC is our front door into these new regulatory fintech developments in the marketplace, and it’s so important to us to be able to understand these innovations that are coming down the pike so fast.

He further added the importance of looking in to blockchain by claiming that unlike other countries who are exploring the benefits by regulating blockchain, U.S. was missing out the offerings of blockchain. He said:

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 regulator.

He raised his opinions related to blockchain and DLT in the past as well. His optimism is conspicuous in his testimony where compared internet with DLT and internet by saying:

This simple approach is well-recognized as the enlightened regulatory underpinning of the Internet that brought about such profound changes to human society. During the almost 20 years of “do no harm” regulation, a massive amount of investment was made in the Internet’s infrastructure. It yielded a rapid expansion in access that supported swift deployment and mass adoption of Internet-based technologies. Internet-based innovations have revolutionized nearly every aspect of American life, from telecommunications to commerce, transportation and research and development. [“Do] no harm” was unquestionably the right approach to development of the Internet. Similarly, I believe that “do no harm” is the right overarching approach for distributed ledger technology.

His concerns about the cryptocurrency depicts his understanding of the crypto market and that’s why his interests revolve around blockchain which is growing day by day. Crypto market performed very well in last week with market cap reaching about $300 billion.

Many top crytpocurrencies blossomed green on price indexes. Bitcoin, the leading cryptocurrency, crossed the bench mark of $8,000 this week. On 25th July, it reached highest peak of the week i.e. about $8,400. Moreover, Cointelgraph’s Bitcoin Price index shows a fabulous weekly gain of 6% and monthly gain of 28%. 

Besides Bitcoin, many other cryptocurrencies also experienced growth this week. Leading altcoin, ethereum, saw significant growth as it reached around $483 this week. Its monthly gains reached to about 7%.

Leading ten cryptocurrencies except Ripple, gained. IOTA saw over 7% growth and performed best among all other cryptocurrencies. VeChain, that categorizes among top 20, experienced up to 28% gain by reaching the peak of $2.51. Litecoin and Cardano were the only ones among top 10 cryptocurrencies besides Ripple who had to bear losses but they too were infinitesimal.Overall, market was very good. It hit highs and at one point, surged up to $303 billion.

SEC has delayed its decision for allowing or disallowing Bitcoin ETFs until September as the present potential of blockchain has made it uncertain for SEC to immediately come up with a decision. They seem to intelligently see all the pros and cons but it is for sure that crypto market deviated them to such extent that they now need more time. SEC addressed the matter by stating:

The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission, … designates September 21, 2018, as the date by which the Commission shall either approve or disapprove the proposed rule change.

Crypto market is leading the world in a new direction. It has now triggered many developments. Although many people resisted and criticized it in past but now crypto market is becoming a reality.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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