- The commission’s decision to include crypto market players in the market advisory committee proves that US regulators recognize the relevance of crypto and blockchain for the future of the country’s financial markets.
- SDF also expressed its pleasure to work with players from the traditional financial space as it develops a deep collaboration between the two giants of the industry, in order to build on the existing financial infrastructure.
According to an announcement from the official Twitter account of the blockchain-based distributed ledger network, Stellar Lumens, the Stellar Development Foundation (SDF) will join the global market advisory committee of the Commodity Futures Trading Commission (CFTC).
The announcement is huge because it is an opportunity for the foundation to provide a crypto-native perspective to the committee as it seeks advice on the opportunities and challenges of the global market.
Great news! SDF joined with @CFTCThe Global Market Advisory Committee is the sole representative of blockchain. We are excited to provide a crypto-native perspective as the Committee advises on global market challenges and opportunities.https://t.co/xzpIJnpQ8i
— Stellar (@StellarOrg) January 19, 2023
Recently, the CFTC re-launched a global market advisory committee to use its experience to discuss the best way to regulate digital asset markets. The commission’s decision to include crypto market players in the market advisory committee proves that US regulators recognize the relevance of crypto and blockchain for the future of the country’s financial markets.
The future is bright for US financial markets
In addition to SDF, there are three other crypto-related companies in this committee. However, SDF is the only crypto company that represents a blockchain company. Other committee members are institutional finance players such as Blackrock, JP Morgan, and Goldman Sachs. CFTC Commissioner Caroline Pham chairs this committee.
The committee will advise the CFTC on how best to address integrity issues and other issues affecting US financial markets. The presence of SDF in the committee is a step forward for the blockchain industry. It also proves the connection between the blockchain and crypto space and the future of the US financial market.
Furthermore, it proves that the CFTC is committed to having players from various fields in the financial space other than traditional finance players. Another benefit of the SDF’s inclusion in the committee is that it gives the industry the opportunity to have a voice in discussions related to regulatory clarity for the blockchain and crypto industry in the short and long term. According to the Stellar Lumens blog post about this development, the blockchain and crypto sector can fulfill its potential if there are smart policies and clear rules from regulators.
Therefore, participants in this sector must continuously dialogue with regulators and policy makers to make these goals a reality.
The purpose of the SDF is to be a member of the committee
The blog post states that the SDF aims to make organizers aware of the relevance of blockchain technology for the development and support of decentralized applications. As remittances become more relevant in the crypto world, stablecoins are one of the most important applications. Therefore, SDF will express the relevance of real use cases of stablecoins and the crypto market.
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The blog post mentions star aid, which delivers humanitarian aid using stablecoins. SDF also expressed its pleasure to work with players from the traditional financial space as it develops a deep collaboration between the two giants of the industry, in order to build on the existing financial infrastructure.
After the buzz of development activity last year, building relationships with regulators is more critical for SDF now than ever. Therefore, its inclusion in the CFTC committee will further strengthen the push for wider adoption of blockchain technology.
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