CFTC Includes Crypto and Tech Executives in Advisory Committee

  • The Technology Advisory Committee focuses on guiding CFTC regarding technology’s impact on the financial system. 
  • CFTC is the US financial regulator that monitors the derivatives market. 

US financial regulator Commodity Futures Trading Commission (CFTC) recently made a friendly gesture towards the crypto industry. Though it’s not about any crypto-friendly regulations, the action may make an impact, given the involvement of crypto executives. The agency reportedly added several executives and founders of different crypto companies to its Technology Advisory Committee (TAC). Apart from crypto, several members from tech companies and university law school professors were also said to join 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 could also give recommendations on how technological changes are making “impact and implications” on the US economy and financial markets. 

Diversified Members Portfolio in CFTC’s Committee

In a public statement on Monday, March 13, CFTC Commissioner Christy Goldsmith Romero announced the update in the committee’s membership. Romero is sponsoring TAC, and the trial attorney at the Division of Enforcement, Tony Biagioli, is a designated Federal Officer. 

Former White House official Carole House will be the chairman, and blockchain intelligence firm TRM Labs’ legal and government affairs head, Ari Redboard, will be the vice-chairman of TAC. 

As reported, the members within the committee across different crypto firms 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 executives from different companies will direct the regulators toward creating a friendly ecosystem for crypto. Being 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 like IBM, Amazon, Cboe Global Market, and CME Group. In addition, university law school professors from Cornell University and the University of Michigan were also included in the panel. 

The CFTC Commissioner stated that the expert members within the committee can provide “the fundamental knowledge about the technology” to the agency. And they will also help in understanding the efficacies of technology on the financial markets. 

CFTC and SEC’s ‘Fire and Ice’ Relation With Crypto

CFTC is known to have a relatively softer outlook towards cryptocurrencies than its counterpart United States Securities and Exchange Commission (SEC). The SEC took measures that were not welcomed or accepted by the crypto industry. Recently it took actions against crypto staking services and barred crypto exchange Kraken from offering a 30 million USD fine against it. Moreover, it also signaled to bring crypto custody services under the existing custodian rules. 

Both actions were not so welcoming to the crypto companies as most of them offered services of crypto staking and custody. Coinbase was the prominent voice against the financial regulator’s actions. It even clarified its stance to defend its staking operations in the court it needed. 

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