CFTC modernizes fintech research unit

CFTC marks the LabCFTC financial technology research unit as an independent entity reporting directly to the agency chairman.

The Commodity Futures Trading Commission announced that LabCFTC will become an independent office under the CFTC and will report directly to agency chairman Heath Tarbert. The group will continue to act as a research unit of the agency in the field of new financial technologies, including blockchain and cryptocurrency instruments.

According to Tarbert, LabCFTC has come under the control of the CFTC General Counsel since its inception in 2017.

“In its new capacity, LabCFTC will continue to focus on both internal and external innovations. This refers to informing agency employees about new technologies, introducing technological tools that CFTC can use to protect rights and counter market manipulation, and to continue collecting information from industry participants. ”

Initially, this group was created in order to become a “bridgehead” for blockchain and digital assets, as well as for other financial developments, the press release said. Since its inception, the group has published a tutorial on smart contracts and a document entitled Introduction to Virtual Currencies. LabCFTC will continue to “play an even larger role” in creating rules for new financial products, the press release said.

Tarbert also noted that “the agency’s vision is to become the global standard for regulating derivatives.” He said:

“I want the agency to become a resource for you, which will help determine how these technologies could fit into the existing regulatory structure. Now that the success of LabCFTC has been demonstrated, we want to strengthen our position in the agency. The division will play an even larger role in CFTC, and will become a critical link with innovators for years to come, and perhaps decades to come. ”

LabCFTC published a tutorial on artificial intelligence and its role in financial markets this week as part of a series of training materials on new tools. The Beginner’s Guide identifies artificial intelligence, describes the work done in this area, and notes how technology can benefit the CFTC and its work in controlling the derivatives markets.