In a speech last week before the CATO Institute, J. Christopher Giancarlo, Commissioner of the Commodity Futures Trading Commission, again argued that regulators, including the CFTC, should adopt a “do no harm” approach to developments regarding distributed ledger technology, commonly referenced as “the Blockchain.” This is because, said Mr. Giancarlo, the technology has the capability to add great efficiencies to operations in financial services and enhance regulatory oversight over registrants, among other reasons. According to Mr. Giancarlo, “DLT development is clearly moving rapidly, certainly faster than underlying legal and regulatory frameworks.” As support for this proposition, Mr. Giancarlo cited a “successful test” organized by the Depository Trust & Clearing Corp. just two weeks ago of DLT to account on a shared network “a month’s worth of trades in the multi-million dollar single-name CDS market.” As a result, argued Mr. Giancarlo, “[g]overnment must foster a regulatory environment conducive to the technological innovation needed to address the increased operational complexity and capital consumption of modern financial market regulation.” At the CFTC, said Mr. Giancarlo, the agency should revisit its recordkeeping rules to ensure they are “technologically neutral” to accommodate DLT. (Click here for details regarding Mr. Giancarlo’s prior exhortations regarding DLT in the article, “CFTC Commissioner Calls for Regulators to “Do No Harm” in Development of Distributed Ledger Technology; Other Regulators Weigh in Too” in the April 3, 2016 edition of Bridging the Week.)