The chairman of the (CFTC) has presented written testimony to the Senate Banking Committee regarding cryptocurrencies and recomended a "do no harm" approach to the digital assets. Chairmain, J. Christopher Giancarlo wrote,
"Two decades ago, as the Internet was entering a phase of rapid growth and expansion,
a Republican Congress and the Clinton administration established a set of enlightened
foundational principles: the Internet was to progress through human social interaction;
voluntary contractual relations and free markets; and governments and regulators were to act
in a thoughtful manner not to harm the Internet’s continuing evolution."
"This simple approach is well-recognized as the enlightened regulatory underpinning of
the Internet that brought about such profound changes to human society. During the almost 20
years of “do no harm” regulation, a massive amount of investment was made in the Internet’s
infrastructure. It yielded a rapid expansion in access that supported swift deployment and
mass adoption of Internet-based technologies. Internet-based innovations have revolutionized
nearly every aspect of American life, from telecommunications to commerce, transportation
and research and development. This robust Internet economy has created jobs, increased
productivity and fostered innovation and consumer choice."
“Do no harm” was unquestionably the right approach to development of the Internet.
Similarly, I believe that “do no harm” is the right overarching approach for distributed ledger
technology. "
"We are entering a new digital era in world financial markets. As we saw with the development of the Internet, we cannot put the technology genie back in the bottle. Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes, and engaging in economic activity. Ignoring these developments will not make them go away, nor is it a responsible regulatory response. The evolution of these assets, their volatility, and the interest they attract from a rising global millennial population demand serious examination. With the proper balance of sound policy, regulatory oversight and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity. This hearing is an important part of finding that balance."