FxWirePro: Unregulated Utility Tokens seemed to have been appraised by CFTC chief

In a speech, delivered by CFTC commissioner Quintenz seems to embrace the concept of unregulated utility token.

Brian Quintenz, of the Commodity Futures Trading Commission (CFTC), addressed the topic of cryptocurrencies and digital tokens. Specifically, Quintez posed the question as to what should the proper role of a regulator be in the midst of a “technological renaissance.”  This renaissance, the Commissioner is referencing, is the advent of blockchain technology and the rapid rise of digital currencies.

“I think it is incumbent upon regulators to create a workable and appropriate regulatory framework that facilitates market-enhancing innovation. This means adopting regulation that is fair, technology-neutral, and does not stifle positive innovations,” said Quintez. 

“It means actively engaging with the financial technology (Fintech) community and other regulators to provide the regulatory certainty necessary to support innovation that promotes competition, vibrancy, and growth in our financial markets.  It also means developing thoughtful, the balanced regulation that allows nascent markets to develop while also protecting investors and preserving market integrity,” he added.

Quintez conferred the significance of the CFTCLab teaming up with stakeholders while advising on viable guidelines.

Qunitez also cited that most renowned tokens are not just really cryptocurrencies and he seems to embrace the concept of a utility token that may not really need a security type regulatory approach;

Nevertheless, it would be innocuous to perceive that the SEC – as demonstrated by, for instance, the Munchee enforcement action – reckons that how the tokens are marketed can contribute to a determination that the tokens are securities, even if the underlying assets that were tokenized are not themselves securities.

FxWirePro launches Absolute Return Managed Program. For more details, visit: 

http://www.fxwirepro.com/invest