Blockchain debate to headline CFTC meeting

Potential blockchain technology applications have been the topic of much debate in recent months. 

Future applications of blockchain technology in derivatives markets will be discussed in Washington later this month.

The US Commodity Futures Trading Commission (CFTC) will hold a meeting at its US headquarters on January 26 to discuss the technology along with the commission’s proposal to regulate automated trading as well as swap data standardisation and harmonisation.

Blockchain – the underlying technology of bitcoin - has been touted as a technology which can be applied across the capital markets and improve a range of processes.

The likes of Nasdaq, Goldman Sachs and post-trade services provider Euroclear have all been investing in the technology through people and initiatives.

The meeting comes after the CFTC proposed increased regulation for bitcoin by declaring them to be traded as commodities.

Such action was proposed by the CFTC in September 2015 after it lodged and settled charges against Coinflip and its chief executive officer Francisco Riordan for conducting activity related to commodity options transactions without complying with the Commodity Exchange Act (CEA) and CFTC Regulation.