Chamber Encourages the Commodity Futures Trading Commission and the Consumer Financial Protection Bureau to Foster Blockchain Innovation

In comments submitted this week to the Commodity Futures Trading Commission (CFTC) and the Consumer Financial Protection Bureau (CFPB) in separate proceedings, the Chamber encouraged both agencies to foster blockchain innovation and permit the introduction of new financial products based on blockchain technologies.

Our comments to the CFPB on their proposed policy on no-action letters and the product sandbox recognized the potential of both tools to bridge the gap between the deliberate pace of regulation and the rapid pace of innovation, while upholding the principle to first do no harm.  We expressed our broad support for the policy and our strong support for regulatory efforts in the United States that: (i) eliminate unnecessary burdens to apply for access to these tools; (ii) enhance the reliability and practicality of these tools; and (iii) promote coordination among regulators.

Likewise, in our comments to the CFTC, we expressed our broad support for the agency’s efforts with respect to financial products involving virtual currencies through the LabCFTC and a variety of other mechanisms.  While we do not advocate for any particular blockchain technology, we supported the agency’s efforts to learn more about Ether and the Ethereum network as well as the Commission’s self-certification process as the appropriate framework for the introduction of new derivatives, such as those based on Ether.

In comments to both agencies, we stressed the need for enhanced coordination among regulators, particularly in light of the byzantine structure of U.S. financial services regulation.  We encourage all financial regulators to collaborate on effective and efficient approaches to achieve regulatory goals while promoting investment and growth.

The Chamber’s comments to the CFPB are available here, and our comments to the CFTC are available here.