LabCFTC centre will become the Office of Technology Innovation under CFTC remodelling
source Image logo : CFTC.gov
The US Commodity Futures Trading Commission (CFTC) will undergo restructuring. CFTC Chairman Rostin Behnam at the Brookings Future of Crypto Regulation event stated that its LabCFTC will now be known as an Office of Technology Innovation (OTI).
According to CFTC chairman Rostin Behnam, the United States Commodity Futures Trading Commission (CFTC), the regulatory body that shares primary responsibility for crypto regulation with the Securities Exchange Commission, will undergo restructuring to become more aggressive and comprehensive. The LabCFTC, which was referred to as "the focal point for the CFTC's efforts to promote responsible fintech innovation," will now be known as the Office of Technology Innovation (OTI), which will be directly accountable to the chairman's office. The operating framework of the program will be updated by the new office.
In a webinar hosted by the Brookings Institute, Behnam stated, that the firm has now engaged in a more proactive and comprehensive effort throughout the agency to regulate these markets using tools currently available to them. Their main policy divisions are directly addressing the ways CFTC can leverage the existing authority so as to bring significant regulatory protections to this market. Behnam also bemoaned the "collective analysis paralysis" of regulators as financial technology advanced rapidly.
In order to better serve the needs of new retail participants in the market, the Office of Customer Education and Outreach of the commission will be "realigned" within the Office of Public Affairs. To protect vulnerable consumers, Behnam emphasized the importance of public education.
The agency's crypto-friendly former Chairman Christopher Giancarlo developed LabCFTC as a focal point for its interactions with the fintech and innovation communities. Since the program's launch, the crypto market, according to Behnam, has come into contact with conventional markets, which has brought the problems to the CFTC's attention. Digital assets and decentralized financial technologies have exceeded their sandboxes, as testified in February, according to Behnam's views.
The Lummis-Gillibrand bill and the Digital Commodity Exchange Act have proposed pieces of legislation that would give the CTFC additional control over the crypto markets.
CBW - External Analyst