Digital Currency Revolution Series: LabCFTC Launches ‘Project Streetlamp’ To Eliminate Unregistered Entities, Including Crypto-Derivatives

The US-CFTC unveils a debut attempt of their science contest titled ‘Project Streetlamp’ with an objective of encouraging innovative technological methodologies and tools to trace out unregistered derivatives offerings, including Bitcoin futures.

The event is organized by CFTC’s Fintech-wing LabCFTC that targets to widen the range of the CFTC’s registration deficient list, through various criteria in name of “RED List,” where the list appears to be ranging over 150 entities that the regulator has figured out the aims of providing a resource to investors.

The CFTC reckons ‘Digital Assets and Blockchain Domain’ breeds principles-based regulation over rules. The Commodity Futures Trading Commission (CFTC) has also come up with the new insights of important role to play in determining as to how the new products and technologies evolve, and ‘LabCFTC’ was launched as a result.

For now, “Innovation and technology aren’t just relevant to developing new products or trading strategies in the market – they are integral to our efforts to enhance the Commission’s own efficiency and technology,”said CFTC Chairman Heath P. Tarbert. “To stay ahead of the curve, we need forward-thinking approaches like the tools that may arise from LabCFTC’s Project Streetlamp, especially as they enhance our ability to keep consumers informed and ultimately, protecting their investment funds. I congratulate LabCFTC Director Melissa Netram and her team for their work on this groundbreaking and innovative endeavor.”

“Project Streetlamp provides another unique opportunity for the CFTC and innovators to come together for the public good,” said LabCFTC Director Melissa Netram. “At LabCFTC, we are continually working to find ways to enhance and support responsible financial innovation. Now, more than ever, we must look to the role innovators play to help government agencies, like ours, fulfill our mission of protecting investors. We are proud of this inaugural competition and look forward to reviewing innovative submissions that do just that.”

“Promoting the integrity of our derivatives markets is at the heart of the CFTC’s mission,” said CFTC Director of Enforcement James McDonald. “We must stay ahead of the curve to inform the public of those entities that are not registered with the CFTC. Adding a level of technology to improve our process to develop the RED List illustrates the sort of forward thinking that is occurring across the Commission.”

The red list includes a criteria where it seeks various control points, such as:

‘does the foreign entity offer products within the CFTC’s jurisdiction, including for example, futures, options on futures (“options”), foreign currency (“forex”), binary options, leveraged metals, contracts for difference (“CFD”), or Bitcoin derivatives (and any other virtual currency contracts regulated by the CFTC)?, Is the foreign entity required to be registered with the CFTC?’

In this event, those who are taking part in ‘Project Streetlamp’, including wide range of developers who equip with budding technologies like artificial intelligence and blockchain in their applications to assist tracing out hostile unregistered foreign entities who provide their products to the public. Tracing of such unregistered parties including ‘Bitcoin derivatives’ appears to be the highest priority of the CFTC’s agenda. Overall, the CFTC and precisely ‘LabCFTC’ have been meticulous in identifying the unregistered parties in all gamuts of investments even in the crypto-space.