U.S. Commodity Futures Trading Commission member: Regulatory requirements should not be an obstacle to the development of blockchain

NEW YORK — Blockchain Symposium 2016: US Commodity Futures Trading Commission (CFTC) Commissioner J Christopher Giancarlo said he believes the government agency should re-examine existing regulations as a way to drive innovation using blockchain technology.

On March 29, 2016, at the 2016 DTCC Blockchain Symposium, Giancarlo gave a keynote speech discussing his views on the impact of blockchain and distributed ledgers on regulators, including the possibility of revisiting the CFTC's regulations regarding new blockchain applications.

Giancarlo also drew a comparison with the Internet, and he even suggested that regulators, such as the CFTC, could adopt a "do no harm" policy similar to that they did with the early days of the Internet, which would allow emerging technologies like blockchain to bring about a large number of jobs.

J Christopher Giancarlo

Giancarlo says:

“US lawmakers are always worried about job losses, especially in the New York area, so they should provide a good environment for DLT innovation, and then the good jobs will naturally follow. For example, the progress of the Internet in the United States benefited from the “do no harm policy”.”

Giancarlo cited CFTC Regulation 1.31, which governs the maintenance and inspection of books and records, as a rule that should be reviewed. In particular, Regulation 1.31 covers the storage of records in “microphotographic or electronic storage media.”

“I believe the CFTC should revisit this rule to promote more efficient and accurate recordkeeping and to conduct necessary checks on regulations that could hinder innovation in distributed ledger technology.”

In his speech, Giancarlo also spoke broadly about the potential of distributed ledger technology to revolutionize various business processes, but he also acknowledged that these were his personal views and not those of the CFTC.

He called on international regulators to take action and work together to reduce the burden on startups and businesses.

“I think regulators and policymakers have a choice to make: either make regulations a burden on innovation or encourage distributed ledger investment and innovation. I favor the latter.”

He also cited the work of regulators such as the International Organization of Securities Commissions (IOSCO) and Japan’s Financial Services Agency (FSA), praising their progress on distributed ledger technology.

Giancarlo believes regulators should work together to better understand how to take an integrated industry approach.

“The issues with distributed ledger technology must be addressed on many levels.”

In summary, various regulatory bodies should review their regulations to ensure that they do not hinder the development of distributed ledger institutions.

Original article: http://www.coindesk.com/cftc-commissioner-revisit-rules-distributed-ledgers/
By Pete Rizzo
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/revisit-rules-distributed-ledgers)