The United States Commodity Futures Trading Commission (CFTC) Technology Advisory Committee has discussed the adoption of Crypto regulation and Distributed Ledger Technology (DLT). During a meeting, the committee reportedly discussed several reports on Cryptocurrencies and DLT, wherein Peter Van Valkenburgh, Director of Research at Coin Center, who spoke on various consensus mechanisms, presented the first report.
In the regard of this topic, the U.S. CFTC Commissioner Brian Quintenz stated in his opening statement that Ethereum’s plan to shift from a proof-of-work (PoW) to proof-of-stake (PoS) consensus raises important regulatory questions, including the possibility of manipulating or falsifying the ledger. Afterward, another report was presented by Kathryn Trkla and Charley Mills, members of the American Bar Association’s Jurisdiction Working Group, where their speech was dedicated to a recent report, titled “Digital and Digitized Assets: Federal and State Jurisdictional Issues.” Referring to their report, the association assessed the current state of Crypto and Blockchain regulation in the U.S., Malta, Switzerland and other countries. On the other end, the Distributed Ledger Technology and Market Infrastructure Subcommittee presented its report on the current state of DLT adoption and the potential use cases of the technology. Additionally, the panel further addressed meticulous areas where the CFTC’s guidance could contribute to the further development of DLT.
Ahead of the meeting, the U.S. CFTC committee also discussed the International Swaps and Derivatives Association (ISDA) report which was about the recent release of the Common Domain Model 2.0 for interest rate and credit derivatives. The talk organized with the intention of on the ability to digitize financial transactions and automate trading processes, as DLT is becoming more actualized in the derivatives space. As it was reported that the CFTC, last year, asked for feedback on the Cryptocurrency to better comprehend the technology behind the Ethereum Blockchain and how it compares to Bitcoin.