The CFTC includes crypto and technology leaders on its advisory committee
- The Technology Advisory Committee focuses on guiding the CFTC regarding technology’s impact on the financial system.
- The CFTC is the US financial regulator that oversees the derivatives market.
The US financial regulator Commodity Futures Trading Commission (CFTC) recently made a friendly gesture towards the crypto industry. While not about crypto-friendly regulations, the action could have an impact, given the involvement of crypto executives. The agency has reportedly added several executives and founders of various crypto companies to its Technology Advisory Committee (TAC). Aside from crypto, several members from tech companies and university law professors were also said to be joining the committee.
According to the CFTC’s website, the 1999-formed Technology Advisory Committee advises the agency “on complex issues at the intersection of technology, law, policy and finance.” It can also make recommendations about how technological change has “impact and implications” on the US economy and financial markets.
Diversified membership portfolio in the CFTC’s committee
In a public statement on Monday, March 13, CFTC Commissioner Christy Goldsmith Romero announced the update to the committee’s membership. Romero sponsors the TAC, and the Division of Enforcement’s trial attorney, Tony Biagioli, is a designated federal officer.
Former White House official Carole House will chair the board, and blockchain intelligence firm TRM Labs’ head of legal and government, Ari Redboard, will serve as vice chair of the TAC.
As reported, members of the cross-crypto-firm committee include Ava Labs founder and CEO Emin Gün Sirer, FireBlocks co-founder and CEO Michael Shaulov, Circle’s global policy vice president Corey Then, Inca Digital CEO Adam Zarainski and Trail of Bits co-founder Dan Guid .
The expertise of these crypto leaders from different companies will guide the regulators towards creating a friendly ecosystem for crypto. As a nascent sector within the financial market, the crypto industry needs guidance and regulation for the right course. However, regulation should also not compromise the growth of the burgeoning asset class.
Along with the members from the crypto space, there will be members from companies and institutions such as IBM, Amazon, Cboe Global Market and CME Group. In addition, professors at the university’s law schools from Cornell University and the University of Michigan were also included on the panel.
The CFTC commissioner stated that the expert members of the committee can provide “the fundamental knowledge of the technology” to the agency. And they will also help to understand the effectiveness of technology in the financial markets.
CFTC and SEC’s ‘Fire and Ice’ Relationship with Crypto
The CFTC is known for taking a relatively softer view of cryptocurrencies than its counterpart United States Securities and Exchange Commission (SEC). The SEC took actions that were not welcomed or accepted by the crypto industry. Recently, it cracked down on crypto betting services and prevented crypto exchange Kraken from offering a USD 30 million fine against it. Moreover, it also signaled to bring crypto custody services under the existing custody rules.
Both actions were not so welcoming to the crypto companies, as most of them offered crypto-staking and custody services. Coinbase was the prominent voice against the financial regulator’s actions. It even clarified its position to defend its efforts in court it needed.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
