The CFTC Chair suggested using the “no harm” principle to support cryptocurrencies and blockchain projects

nRunaway Comment: The Chairman of the Comittee of the United States submitted written testimony to the Senate Banking Committee recommending no harm to the blockchain and cryptocurrency technology, including the related corporate registration process. Because the Internet history tells us that the right regulatory response is the foundation on which the Internet has brought contemporary economic prosperity. The chairman of the SFC even said that whatever the legal status of ICO, it is a more efficient way of financing. While U.S. regulators actively support the development of technology, they quickly remove the bad people and bad items that undermine the ecological balance and arouse people’s confidence in the future development. Of course, how the old legal system can adapt to the new challenges in the new environment is also an arduous task.n
nTranslation: Annie_Xun
On February 5, 2018, J. Christopher Giancarlo, chairman of the Commodity Options Exchange Board (CFTC), in written testimony before the Senate Banking Committee, suggested that distributed ledgers and the registration of cryptocurrency firms and start-ups The process should pay attention to the “do not hurt” principle.n
Giancarlo said:n
n”Virtual currency has brought a paradigm shift in what we know as payments, traditional financial processes, and the way we participate in economic activity, and ignoring these developments does not make them disappear nor is it a responsible regulatory response.”n
nThe written testimony, which generally supports distributed ledger technology, contrasts the Internet era with the current blockchain campaign.n
Giancarlo said, “‘Do not hurt’ is undoubtedly the right Internet policy. Likewise, I believe ‘not hurting’ is the correct general guideline for distributed ledger technology.”n
In contrast to the public nervousness brought about by regulatory actions, both the SEC and CFTC statements show a relatively positive blockchain and cryptocurrency attitude. Recently, the SEC chairman even said: “I believe whatever the ICO represents for securities issuance could be an effective way of financing entrepreneurs and others, including innovative projects.”n
However, the testimony still raises some outstanding issues, such as using the bad guys in the industry.n
Giancarlo said:n
n”In fact, history has once again proved to us that villains will try to use the innovative concept of the ancient public fraud plan.”n
nThese are all expected to happen, after all, the interest behind each exercise, excitement and simple scale will attract the use of these bad guys.n
It is my pleasure to see regulators remove these bad guys and at the same time preserve a relaxed and simple environment for others in the field. Just as the rapidly evolving Internet itself can not happen if regulators facing a paradigm shift devise new regulations that are hard to implement.n
As long as you think about it, you know that most of these laws and regulations were drafted in five or six decades or even seventies and eighties ago. Far in the era of computers and even the Internet, the blockchain was not even known yet. So regulators face the daunting task of figuring out how these generations of legislation apply to things that were probably never imagined 80 years ago. However, it is very exciting and optimistic to see that they take reasonable steps without exceeding their limits. I am pleased to see the U.S. regulators actively providing support while expeditiously handling frauds, frauds and bad guys.n

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