US Treasury FinTech Report Mentions Blockchain Innovation and Crypto Regulations
U.S Treasury Department has issued a report that analyzes potential innovations that can rid the fintech sector of current issues and flaws. As per Coin Telegraph’s post, the report was 222 pages long, with a section dedicated to “Nonbank Financials, Fintech and Innovation”. According to the claims made, the U.S Treasury took very little of the report to touch base on cryptocurrencies and distributed ledger technology (i.e. blockchain).
It did not stop at a simple reference, as the report hinted at some works currently in the making as the innovative technology and digital asset are being “explored separately in an interagency effort led by a working group of the Financial Stability Oversight Council.”
The report also stressed the importance of U.S involvement and acceptance of innovative technologies, adding that “more streamlined and tailored oversight” is required to simplify complex regulations that might limit prolongation.
Having realized that the cryptocurrency market has gained momentum from not only consumers, but also that of largescale financial leaders and firms, the U.S Treasury believes that G20’s ongoing efforts in the matter should be developed upon.
The report supposedly referred back to the discussion that was held in March 2018 by G20 officials, which had many agreeing on the fact “that technology innovation, including that underlying crypto-assets [sic] has the potential to improve the efficiency and inclusiveness of the financial system.” Most importantly, the efforts made in highlighting anti-money laundering (AML) schemes and investors’ protection was applauded.
Although the treasury is not fully certain as to how DLT will help the finance sector prosper, with the hope that it can, a list of benefits was provided, which include the likes of:
“Commodities trading and securities settlement […] identity products and services [and] the potential for central bank-backed digital currencies […] that utilize DLT, [which some assert] could potentially help reduce fees, processing times and operational risks for market participants.”
Finally, the U.S Treasury made note on the fact that U.S as a competitor when it comes to adopting innovative technology is rather slow, which was supported by U.S Commodity Futures Trading Commission (CFTC)’s finding that the country is “falling behind” compared to other countries. In particular, the latter believes that the country’s lack of direction and structure on all matters, Proof-of-Concept, is a major factor putting them back.