US Treasury Department Fintech Modernization Report Touches on Digital Assets, BlockchainAugust 22, 2018
A significant report from US Treasury Department has called for agile and encouraging regulatory approaches to innovation in fintech segment.
The report is composed of 222 pages, dedicated to Fintect, Nonbank Financials, and Innovation, just briefly touches upon DLT or Distributed Ledger Technologies and digital assets like blockchain technology, noting that at present these are being explored individually through the effort of interagency headed by “Financial Stability Oversight Council team.”
Primarily, the document shows a strong force on the United States government to look after budding financial systems and to update existing authoritarian frameworks so as to remove obstructions to their development.
The report supports “more rationalized and modified oversight,” putting forward sets of suggestions that propose a strong liking to decrease overly intricate regulations which may confuse development. These include balancing cumbersome state-by-state fund transmission legislation that’s currently used to crypto exchanges in the US.
Noting that crypto assets interest has “substantially amplified” from economic authorities globally, the Treasury Dept singles out the committed hard work on G20 to begin suitable metrics for watching the growing sector.
As it explains that these take in administrating the “innate risks,” which crypto assets “presently pose for the protection of investor and anti-money laundering as well as illegal finance regimes. ” This report also refers to a G20 communiqué from March which insists “that technological modernization, including that basic crypto-asset, has the probability to perk up the effectiveness and extensiveness of the economic structure.”
The Treasury Dept further recognizes an array of distributed ledger technologies applications which are being made by the economic services industry –– even if it notes that the perks are still “extremely uncertain.
The Treasury further supports the draw on a regulatory sandbox and persuades efforts “to make laboratories, working groups, advance offices, as well as other ways for business participants to take on openly with controllers. A “symbiotic connection” between a regulator and innovator “is required to prop up the United States economy and uphold the competitiveness worldwide.”
This idea chimes with distress voiced lately by the head of the United States Commodity Futures Trading Commission, who stated that the United States is “left by ” other nations in fostering modernism. He noted notably that the group lacked the officially sound measures that would allow it to partake in testings of blockchain PoC or proofs-of-concept, in spite of that reality that it has developed a LabCFTC for endorsing modernism in Fintech.