Senior VP At HSBC Encourages CFTC to “Give Some Positive Words” Regarding Blockchain Adoption
Blockchain technology is one of the greatest gifts that have come from cryptocurrency that does not have to be directly intertwined with it. However, the adoption of blockchain technology in the United States has been fairly minimal. To help urge it along, Jesse Drennan of HSBC believes that the CFTC can do something.
At the Technology Advisory Committee on Wednesday, the senior vice president of HSBC made a statement to the US Commodity Futures Trading Commission (CFTC) about what they can do. According to Drennan, giving some “positive words” regarding blockchain technology and blockchain adoption could help with the process.
Right now, it is not so much that blockchain technology is “being hindered,” but Drennan believes that firms that want to bring forth progress with blockchain and want to test it out are looking at regulators first. Much of the concern could probably be because regulators haven’t given much certainty over where they stand. Drennan noted that there’s clearly “sensitivity” from the industry regarding how the technology will fare with the regulators to remain within their policies.
Drennan added that the CFTC should take whatever opportunity that they can to “make positive noise,” which could leave firms with more certainty over what they can do to bring their developments to market. He added that that even just “having the conversation” about their stance could make a difference.
So far, it is worth bringing attention to the fact that the leaders in the CFTC have been fairly supportive of enterprise DLT and cryptocurrency alike. The chairman of the commission, Christopher Giancarlo, has even earned a nickname – “Crypto Dad” – for his consistent support. Yesterday, the leader of the LabCFTC initiative of the regulator, Daniel Gorfine, had recently published an essay that discussed the nature of crypto, even positioning them as having the same value of the traditional currency.
The comments from Drennan happened towards the end of the meeting, which took nearly all day. There were also representatives from Coin Center, IBM, the International Swaps and Derivatives Association (ISDA) and R3, collaborating on the DLT space and cryptocurrency.
In the opening comments of commissioner Brian Quintenz, a sponsor of the committee said that the subcommittee on DLT and market infrastructure would be discussing the fintech, along with anything that may be preventing the adoption in a wider capacity.