CFTC Chairman Giancarlo: Supporting Block Chains to Meet “National Interests”


nnJudge: J. Christopher Giancarlo, Chairman of the US Commodity Futures Trading Commission, said the block chain was in the national interest of the United States in Washington, DC. Especially in today’s digital tide, regulation is still in the traditional model. It is necessary to use the block chain technology to achieve regulatory digitization. It is only necessary to guard against risks in technological development and to strike a balance between digitalization of financial markets and investor protection.n
nTranslation: Annie_Xun
The block chain conforms to the “national interest” of the United States.n
J. Christopher Giancarlo, chairman of the CFTC Commodity Futures Trading Commission, said this at the Washington government technical director’s meeting.n
However, although the block chain industry has always encouraged regulators and government agencies to support the technology, this approval may be more important. For example, the statement is unique to the size and level of the audience, with about 270 leaders of more than 40 US government agencies.n
n”Distributed books and block-chain technology will challenge the fundamentals of our financial infrastructure.”n
nn”We are all digitized, and the regulators are not yet digitized.We are the analogue regulator for the digital market, and most importantly, Giancarlo emphasizes that the US regulatory framework must catch up with the fast-growing digital economy.”n
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Overcome obstaclesn
Giancarlo also said that government agencies should not only understand the block chain, find ways to use the technology in the regulatory field.n
n”Whether it is based on the digital identity of the block chain, or a sound regulatory report and monitoring, or efficient clearing and settlement process, transparent information flow; these innovations may be beneficial to the US public.”n
nGiancarlo said the “perfect example” is the use of distributed book system to implement the Dodd-Frank financial reform rules. This regulation, which was completed in 2010, requires financial institutions to file swaps information to the central authorities.n
The purpose of the rule is to allow other banks to see the financial institutions more clearly and to better assess system risks. But because of technical constraints, the project encountered obstacles, Giancarlo believe that these difficulties is the block chain can be overcome.n
But in the past Giancarlo mentioned the potential of the chain chain to reduce the complexity of the financial system, his statement at this meeting details how the technology will achieve that goal.n
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Get a balancen
Although it is optimistic, Giancarlo mentioned that the digitalization of contemporary financial markets must create a “delicate balance” between innovation and investor protection.n
n”The optimism about encrypted money should not allow investors and regulators to ignore the escalating risk of the field.”n
nThis is especially important, and the CFTC has recently discovered that some of the encrypted tokens are commodities and have issued a commodity trading license to LedgerX, an encrypted currency derivatives clearing house.n
Giancarlo also said that the agency has no intention to go beyond the jurisdiction of the tokens to define the division.n
Under the leadership of Giancarlo, the CFTC introduced the block chain through the RCC LabCFTC. Although his approach meant that the border was unavoidable, he said that the power was healthy and necessary for the modernization of the traditional regulatory framework.n
Giancarlo Summary:n
n”This is reasonable because our rules are not designed for the technology. In fact, our rules are designed for markets that no longer exist, and we need to upgrade them.”n

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