The heads of two of the United States of America’s financial regulation divisions recently testified in Congress about the need for digital asset and blockchain literacy. The hearings were conducted before the Senate Committee on Appropriations.
Commodities Futures Trading Commission (CFTC) head J. Christopher Giancarlo and Securities and Exchange Commission (SEC) chairman Jay Clayton both appeared in a hearing aimed at informing the Senate on the two agencies’ budget requirements while also providing a brief overview of their initiatives and objectives.
In separate testimonies, the two heads underlined the importance of their agencies being literate in blockchain technology and digital assets.
Improved Blockchain Knowledge
According to SEC head Clayton, this division’s Office of Compliance Inspections and Examinations had already deemed digital assets like virtual coins, tokens, and cryptocurrencies as high-risk investments. The SEC has also requested the inclusion of four posts in the Division of Trading and Markets to help improve their knowledge of the digital asset market. The division is in heading regulation for “major securities market participants.”
Meanwhile, CFTC head Giancarlo claimed he had also noted the astounding speed of technological advancement, “the disintermediation of traditional” players and business models, and the demands for big data capacity and technological expertise as areas where regulators are presently being challenged.
Giancarlo stated that the CFTC is working hard to adapt to this rapidly changing environment and transform into a “quantitative regulator.” He also said that his commission’s proposed budget would give it the chance to expand its economic specialization and enable it to conduct in-depth empirical and analytical studies in key areas.