HSBC Exec: CFTC Should Be Positive About Blockchain To ‘Accelerate’ Adoption.
HSBC senior vice president, Jesse Drennan spoke on Wednesday to the US Commodity Futures Trading Commission (CFTC) towards the end of a 5hr+ Technology Advisory Committee meeting, which also saw representatives from industry lobbyist Coin Center, IBM, International Swaps and Derivatives Association (ISDA), DLT builder R3 and the CME Group. Drennan encouraged the regulators to make more ‘positive noise’ around Blockchain and distributed ledger technologies to accelerate adoption.
“It would also be beneficial if the CFTC would give some positive words around DLT and DLT adoption,”
Drennan accepted that adoption was not necessarily ‘being hindered right now’, but believes more could be done to encourage its usage by hesitant businesses. Drennan believes it’s important to clear up any ambiguity and how regulators at the CFTC perceive the technology, in order to ease potential concerns, as it may be hindering growth.
“Certainly there is a sensitivity to how the regulator may feel about such technology and supporting the activity that the parties are rolling out,”
“So wherever the Commission could make positive noise, that may accelerate for some firms their ability to bring it to market as it overcomes that bit of due diligence about just having the conversation around how you feel about the use of the technology to support the activity that they are pursuing.”
The CFTC chairman, Christopher Giancarlo and others in leadership roles have been publicly supportive in the past of Blockchain and DLT solutions for business. On the 26th March, Daniel Gorfine, who heads up the CFTC’s fin-tech initiative LabCFTC, published a paper regarding the nature of cryptocurrencies entitled ‘Valuing Cryptocurrencies As . . . Currencies?’ The paper also discusses how adoption of these technologies may benefit the space more broadly.