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- The commission’s decision to include crypto market players in its market advisory committee proves that the US regulators recognize the relevance of crypto and blockchain to the future of the nation’s financial markets.
- The SDF also expressed his delight at working with players from the traditional finance space as it fosters deep collaborations between the two industry giants, enabling them to build on existing financial infrastructures.
According to an announcement from the official Twitter account of the blockchain-based distributed ledger network, Stellar Lumens, the Stellar Development Foundation (SDF) will be joining the global market advisory committee of the commodity futures trading commission (CFTC).
The announcement is huge as it’s a chance for the foundation to lend a crypto-native perspective to the committee as it seeks advice on opportunities and challenges of a global marketplace.
Big news! SDF is joining the @CFTC’s Global Market Advisory Committee as its only blockchain representation. We are excited to lend a crypto-native perspective as the Committee advises on the challenges and opportunities of a global marketplace.https://t.co/xzpIJnpQ8i
— Stellar (@StellarOrg) January 19, 2023
Recently, the CFTC relaunched its global market advisory committee to use its experience to discuss the best ways to regulate the digital asset market. The commission’s decision to include crypto market players in its market advisory committee proves that the US regulators recognize the relevance of crypto and blockchain to the future of the nation’s financial markets.
A bright future for the US financial markets
Besides the SDF, there are three other crypto-related firms in this committee. However, the SDF is the only crypto firm representing blockchain firms. Other committee members are leading institutional finance players like Blackrock, J.P. Morgan, and Goldman Sachs. The CFTC commissioner, Caroline Pham, heads this committee.
The committee will suggest to the CFTC the best ways to tackle integrity issues and other issues affecting the US financial markets. The presence of SDF in the committee is a huge step forward for the blockchain industry. It also proves a connection between the blockchain and crypto space and the future of the US financial markets.
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 SDF’s inclusion in the committee is that it affords the industry a chance to have a voice in discussions relating to regulatory clarity for the blockchain and crypto industry in the short and long term. According to a Stellar Lumens blog post regarding this development, the blockchain and crypto sector can fulfill its potential once there are smart policies and clear rules from the regulators.
Hence, participants in this sector must be in constant dialogue with regulators and policymakers to make this goal a reality.
SDF’s objectives as a committee member
The blog post revealed that the SDF aims to make the committee understand the relevance of blockchain technology to the development and support of decentralized applications. As remittances become more relevant in the crypto world, stablecoins represent one of its most important applications. Hence, the SDF will reiterate the relevance of stablecoins’ real-world use cases and crypto markets.
The blog post mentioned the stellar aid assist, which delivers humanitarian aid by leveraging stablecoins. The SDF also expressed his delight at working with players from the traditional finance space as it fosters deep collaborations between the two industry giants, enabling them to build on existing financial infrastructures.
After a buzz of development activities last year, building relationships with regulators is more critical for SDF now than ever. Hence, its inclusion in the CFTC’s committee will further strengthen the push for broader adoption of blockchain technology.
