J. Christopher Giancarlo, the chairman of United States Commodity Futures Trading Commission (CFTC) has said that the firm's fintech innovation hub LabCFTC holds the key to exponential technological growth and market evolution. These comments were made by Christopher in his last appearance as the chairman during 44th Annual International Futures Industry Conference on March 14.
In his last address to the committee, Christopher emphasized on making blockchain and cryptocurrency as a part of the regular financial ecosystem as he believes the technology holds the key in advancing the Digital market.
Christopher also addressed the uphill task that would fall on the shoulder of regulators in bringing the exponential change to the current scenario. He said that the establishment of LabCFTC one small step towards achieving the daunting task at hand.
Talking about the contribution of LabCFTC towards making blockchain and crypto more mainstream has been appreciable as the lab has interacted with over 250 small and big innovators of the field, conducting lab hours across the United States and internationally. The LabCFTC was established two years ago keeping the Fintech in focus.
Christopher went on to say that the LabCFTC is not a regulatory sandbox and does not exempt anyone from CFTC rules. The lab is rather there to provide, “internal and external technological focus.”
He explained further,
“Internally, it means explaining technology innovation to agency staff and other regulators and advocating for technology adoption. Externally, that means reaching out and learning about technological change and market evolution, while providing a dedicated liaison to innovators.”
What Does LabCFTC Do?
LabCFTC the fintech arm of the CFTC would be involved with cooperation agreements with global regulators from Singapore, London, and Australia. Apart from the agreement, the fintech arm would also be responsible for the publishing of technology primers and public feedback solicitations.
Christopher also noted that the CFTC is not the only organization looking to work in coordination with the digital asset market. He went on to say that every US federal financial regulator has either created or are in the process of creating a side-arm just like LabCFTC.
Chairman of CFTC also believes that the US agencies have realized the potential in the technology of Distributed Ledger Technology and embracing market-based solution for innovation.
The statements made by the chairman of CFTC in his last address to the committee paints quite a rosy picture for the future of Blockchain and cryptocurrencies. Regulators are often portrayed as the villain and a roadblock in the major crypto boom. However, looking at the recent statement of CFTC chairman and the work done by LabCFTC, it's quite evidential that even the biggest critiques have come around to accept the fact that the real future lies in the decentralization.
Cryptocurrencies and Blockchain technology is on the verge of expanding on the global level. Most governments around the world have been looking to incorporate both blockchain and crypto in their system, however, it would be one daunting task.