Stellar Development Foundation Becomes An Advisor For The CFTC• January 20, 2023 6:20 pm • Comments
The Stellar Development Foundation is the company that is behind the Stellar Lumens blockchain project and its native token XLM.
XLM is known as one of the main rivals to Ripple’s XRP and it was just revealed that the foundation will be joining as an advisory member for the US Commodity Futures Trading Commission (CFTC).
This is quite interesting given the fact that there has been a power struggle between the CFTC and the SEC on who should be regulating the crypto industry in the US.
If Stellar is now advising the CFTC, this may indicate that the CFTC may be taking a more active role on regulating crypto which will be positive for the overall industry.
After all, much of the crypto community as criticized the actions of the SEC as the agency has failed to protect many investors and seems to be picking winners or losers within the market.
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
The SDF will be responsible for blockchain and digital assets in the relaunched body and will guide the CFTC on these issues.
In addition to representatives from Stellar, officials from the Chamber of Digital Commerce, Uniswap Labs and CoinFund will also be on the side of the new digital economy. However, the blockchain’s direction will be exclusively overseen by Stellar.
Stellar itself is signaling hope for fruitful work with representatives of traditional financial markets, with J.P. Morgan, Goldman Sachs and BlackRock also joining the Global Market Advisory Committee.
As a decentralized cross-border money transfer operator in particular, Stellar (XLM) wants to pay particular attention to the issue of remittances and stable coins.
The fact that the CFTC is willing to select a crypto firm to become a member of its advisory is seen as a very positive sign.
The relationship between Stellar and CFTC is actually the exact opposite of the current situation between Ripple and the SEC.
The SEC continues its lawsuit against Ripple by claiming that XRP is considered a security and the prolonged lawsuit seems to not have changed the SEC’s intentions on how to regulate digital assets.
Whether or not the CFTC will start to obtain more authority than the SEC in the future is still unknown, but speculators believe that the regulatory environment must change before the crypto space can truly reach mass adoption.
“As part of the Committee, SDF will highlight the role of stablecoins in the digital asset markets and real-world use cases, including leveraging stablecoins in the delivery of humanitarian aid.” – @jachlipala via @cointelegraph https://t.co/Zo9SHpjnDK
— Stellar (@StellarOrg) January 20, 2023
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.
— Pipshunters (@Pipshunters1) January 20, 2023
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