CFTC develops a 2020-2024 strategic plan through which the necessary bases and guidelines for the responsible development and innovation of Bitcoin and other cryptocurrencies will be established.
La Commodity Futures Trading Commission (CFTC) of the United States issued a release in which he announced the completion of his strategic plan 2020-2024 framed in the development and innovation of cryptocurrencies, . According to the statement, the development plan for cryptocurrencies established by this organization was approved by the Commission unanimously in May of this year, and was subject to a period of 30 days during which comments and suggestions were accepted in this regard. Now, at the end of this period, the CFTC presents the final version of its strategic plan.
The chairman of the CFTC, Heath P. Tarbert, expressed that this new development plan conforms to a practical and precise version of what the main regulatory entity of the United States futures market wants to achieve with a focus on cryptocurrencies. According to Tarbert, this plan only required a few pages, compared to previous ones that had a long and exhausting development. Even so, the president of the CFTC expressed that it is not a simple program, but rather that being brief and precise provides a great advantage that allows it to adjust to the vision of the CFTC during the next 4 years of its management and further.
This new strategic plan seeks to prioritize the development and regulation of cryptocurrencies in a comprehensive way that allows companies, organizations and users to innovate with cryptocurrencies such as Bitcoin always understanding the risks and potential that these digital assets possess.
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Objectives of the CFTC strategic development plan
The CFTC's development plan seeks to prioritize the regulation of cryptocurrencies with a “holistic” approach, according to the organization. Through the comprehensive regulation of cryptocurrencies, innovation and responsible development of these digital assets will be promoted. We must not forget that the CFTC is the American derivatives and futures regulator and, therefore, in charge of managing the futures markets, preventing manipulation and fraud within these spaces.
Regarding cryptoassets, the CFTC currently classifies Bitcoin (BTC) as Ethereum (ETH) as commodities, so futures contracts are legally available for these cryptocurrencies in various exchanges approved by the organization, such as ErisX, LedgerX y Bitnomial. These markets have licenses assigned by the CFTC to operate as designated contract markets (DCM) specialized that now integrate futures related to cryptocurrencies and digital assets.
As expressed by the CFTC, the 2020-2024 strategic plan includes 5 essential and clearly defined objectives that will allow the organization to promote the integrity of the futures market. The first of these objectives is to strengthen the resilience and integrity of futures marketsFollowed by establish regulations for the markets, encourage and develop innovation of participants within these markets, establish regulations that penalize those who do not comply with established regulations and finally, develop and improve the effectiveness of the CFTC according to the established vision of the organization.
Responsible development and innovation of cryptocurrencies
In the third objective, called “Encourage innovation and improve the regulatory experience for the participating market at home and abroad”, section 3.4, the CFTC states that:
“We will develop a holistic framework to promote responsible innovation in digital assets.”
At this point, the CFTC expresses the need to establish regulations that allow the responsible development of cryptocurrencies and digital assets, which were also called “basic products of the 21st century”. Furthermore, the organization highlighted the importance of digital transformation through the adoption of new emerging technologies in development, which represent both an opportunity and a challenge for society. At this point the CFTC points out the importance of establishing the necessary regulations that replace the regulations established on commercial practices that are no longer implemented today.
Scenario yet to be defined for other cryptocurrencies
On the other hand, in addition to Bitcoin and Ethereum, the scenario for other cryptocurrencies such as Ripple (XRP), which do not have a clear definition as to whether they are assets, collateral, securities or products, so the CFTC is working closely with the Securities and Exchange Commission (SEC) of the United States to establish what scope the rest of the digital currencies available on the market will enter.
What is clear is that the CFTC seeks to position the United States as a leader within the crypto and technology space. blockchain, as Tarbert expressed it during a interview, so this organization adopted the role of regulator and supervisor and together with the SEC has been providing information about Bitcoin and other digital assets since 2017.
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