Coders with Smart Contracts Warned by CFTC Commissioner
The CFTC, a self-governing organization embedded into the the United States government and was founded back in 1974, is aiming new regulations at coders with smart contracts.
Brian Quintenz, a commissioner at CFTC, had spoken last Tuesday in the UAE. He explained how to apply conventional rules to technologies like smart contracts as well as blockchain.
He referred to these technologies as being manageable, which is why they could be modified to reveal upcoming results. There’s no limit to their applications as they can even copy conventional financial tools.
Quintenz questioned who is to blame when a product is used against their regulations. At the CFTC, new regulations regarding how they should inflict their laws in regards to software code are being investigated and thoroughly examined. The CFTC previously restricted such actions of predictions, contradicting the public as a result.
The commissioner continued on by saying that the developed code had a range of endless applications, and so it was not logical to blame the designers for every application that uses the technology they built, regardless of any evidence or intention. The designers are not always aware of the implemented smart contracts.
He mentioned at the end of his speech the various applications for smart contracts promising for future and existing markets. Such applications support multiple areas of accountability. Therefore, the developers promoted a breach of regulations put forth by the CFTC and such people can be prosecuted.
In May 2018, a regulator at the CFTC had said that two of the biggest cryptocurrencies in the world, Ripple as well as Ethereum, were not considered to be compliant in terms of security and that they operated outside the jurisdiction of the United States.
Quintenz explained as well that conventional ways will be used to find out about the transactions. People could be able to design their very own smart contracts and start predicting future events and start betting on them, thanks to cryptocurrency. If this is true, the contract pays right away. The CFTC called it a prediction market, where contracts for events are used. They can be binary contracts that enable people to bet on outcomes of events in the future.
In July 2018, the law commission in the UK talked about smart contracts and how they can enforce the law.
The Public Office deals with a lot of important social laws and it’s predicted that blockchain and cryptocurrency will be impactful in this regard. It can be used to protect data and to fight money-laundering in the near future.