Bitcoin, Litecoin, and Ripple on the rise as CFTC set to create special committee for cryptos

  • The Committee of CFTC keeps cryptocurrency and blockchain distinct
  • Two subcommittees are established to explore and regulate crypto industry

All major cryptocurrencies are growing steadily on Thursday, as market participants are evaluating the outcomes of CFTC panel discussions on cryptocurrencies.

The Technology Advisory Committee of the Commodity Futures Trading Commission (CFTC) held discussions on cryptocurrencies and blockchain technologies on Wednesday. The participants both from private and public sector focused on the regulatory issues and the role of overseeing bodies in the development of new industry and the technologies it is based on.

Brian Quintenz, a Commissioner of the Commodity Futures Trading Commission, suggested self-regulation for the cryptocurrency industry. 

“The CFTC should not attempt to make value judgments about which new products are worthwhile and which are not – the markets, investors, and consumers need to decide that for themselves,” he said in the opening remarks to his speech before the Committee.

Not everyone would agree with that. Several participants argued that the adaption of new technology within the financial sector shall be regulated, while the blockchain itself may become a handy tool for the watchdogs as they will be able to run their peer-to-peer network for fast and reliable access to information

According to Dan Busca, deputy director of the CFTC’s Division of Market Oversight, “The evolution of DLT could allow regulators to access data seamlessly every time a trade is posted on a particular blockchain without the need for human intervention or intermediaries.” 

In general, the discussions and the sentiment shared by the participants of the panel, confirm the cautious and at the same time pragmatic approach, adopted by the US regulators.  

At the end Technology Advisory Committee approved the establishment of two subcommittees: one would deal with cryptocurrencies issues, and the other one would work on the application of distributed ledgers in the financial industry. 

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