US: Crypto Advocacy Group Encourages Financial Regulators to Foster Innovation

Published at: Feb. 20, 2019

United States blockchain advocacy group Chamber of Digital Commerce has encouraged two major financial regulators to foster blockchain innovation, according to an official tweet on Feb. 19.

The group has reportedly provided comments to the Commodity Futures Trading Commission (CFTC) and the Consumer Financial Protection Bureau (CFPB) in different proceedings this week. Generally, the Chamber of Digital Commerce has asked both agencies to permit the introduction of new financial products based on blockchain technologies and to collaborate on efficient approaches that would promote investment and industry growth.

In its comments to the CFPB, the advocacy group group encouraged the regulator to apply available tools for supporting innovation, such as no-action letters and so-called “sandboxes.” The Chamber of Digital Commerce has also noted that it will support any U.S. policy that eliminates “unnecessary burdens” to get access to decentralized tools and stimulate relevant studies, along with promoting coordination among different regulatory bodies.

In a separate letter to the CFTC, the group expressed support for the CFTC’s previously launched initiative, dubbed LabCFTC, which examines fintech innovations. Moreover, the Chamber endorsed the CFTC’s commitment to learn more about the Ethereum (ETH) network, as well as the possibility to elaborate a framework for the introduction of ETH derivatives.

Earlier this year, the Chamber of Digital Commerce called on the U.S. government to implement a national action plan on blockchain. The group believes that blockchain offers a “myriad of transformational benefits” for businesses, government and consumers. The group also thinks that, as a leading nation in tech, the U.S. has to fully embrace a national strategy on decentralized technologies.

As Cointelegraph previously reported, cryptocurrency forms a priority for the CFTC’s recently published internal examinations for this year. The examinations will include cryptocurrency surveillance practices, as well as other market and trading surveillance, including real-time monitoring.

In February, CFTC commissioner Brian Quintenz suggested that participants in the cryptocurrency industry should create a self-regulatory structure in which they can discuss legal frameworks and examine or audit the field.

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