CFTC could go further in regulating fintech

Author: John Crabb | Published: 6 Jun 2017

In his first major announcement since being appointed, acting Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo unveiled last month a major initiative aimed at promoting the ‘quality, resilience and competitiveness’ of the US fintech market.

Although widely supported by the market, observers suggest that the initiative is limited. While there are ongoing discussions in support of an industry-wide effort to modernise regulatory processes in the US in line with other developed economies, some market participants have said a regulatory sandbox approach would be more effective to boost innovation.

The regulation of fintech was one of the CFTC's first announcement under new head C. Giancarlo

The initiative itself, known as LabCFTC, has two functions: GuidePoint and CFTC 2.0. GuidePoint will primarily act as a focal point for enquiries to the regulator from fintech and regtech companies and innovators with respect to its regulated markets. CFTC 2.0 has been introduced...