CFTC Chief Innovation Officer and Director of LabCFTC Daniel Gorfine asserted that the LabCFTC initiative was intended to "make the CFTC more accessible to FinTech innovators" and to "inform the [CFTC]'s understanding of emerging technologies."

In a "CFTC Talks" podcast interview conducted by CFTC Chief Market Intelligence Officer Andrew Busch, Mr. Gorfine discussed the FinTech landscape, and identified CFTC efforts to utilize and facilitate FinTech innovations. He explained the crucial role of the internet and mobile in facilitating the emergence of FinTech, and asserted that the LabCFTC initiative allows for the development of innovation and will drive rapid adoption. Through LabCFTC, the CFTC will engage with innovators through outreach efforts, programs to solicit feedback, and other guidance-related initiatives, he said. Mr. Gorfine reiterated earlier remarks that the CFTC is committed to becoming a "21st-century regulator," and emphasized the necessity of a "proactive" approach to FinTech regulation:

"We don't have the luxury of waiting five years and being reactive, we need to currently . . . be identifying, what are our merging regulatory opportunities, challenges and risks and make sure that we have the tools and the mindset at our disposal internally so that we can grapple with those types of issues and make sure that we really do foster the most effective and efficient markets that we can."

In addition, Mr. Gorfine described the expanding role of distributed ledger technology (e.g., blockchain), explaining that it has the potential to increase efficiency and transaction reporting, but also compliance costs. He noted the release of a recent LabCFTC primer on virtual currencies. Further, he touched on smart (self-executing) contracts, which he said have the potential for expansive applications.

Mr. Gorfine expressed concerns related to scalability, and the capability of cryptography-based platforms to withstand security challenges that may arise from developments such as quantum computers. He cautioned that risks and challenges will continuously arise with all of these emerging technologies. Privacy, security and identity protection challenges have and will continue to present issues for FinTech developments as the landscape continues to evolve.

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