- The cross-remittance blockchain is the only layer-1 protocol in the committee.
- Others joining the platform include Uniswap Labs and CoinFund.
The developer behind cryptocurrency XLM, Stellar Development Foundation (SBF), has been admitted into the Commodity Future Trading Commission’s Global Market Advisory Committee (GMAC), joining traditional financial institutions like JPMorgan, BlackRock, and Goldman Sachs.
Part of the role that SDF will undertake under the relaunched body includes providing guidance on matters of cross-border remittances and the position of stablecoins in the digital asset space. In the announcement, SDF noted that it was important to enlighten the commission with all the aspects of stablecoins and their use cases, including in humanitarian assistance, for instance, the Stellar Aid Assist. The Chamber of Digital Commerce, Uniswap Labs, and CoinFund are the other firms in the blockchain sector that are now members of GMAC.
Said Stellar: ‘‘our inclusion in the Committee marks another important moment for blockchain. It further acknowledges that the future of US markets and our industry are connected.’’ The platform is also taking it as an opportunity to contribute towards the establishment of better industry regulations under the outfit. The US regulators have been faulted for not providing clear guidance to the industry.
The Layer-1 Blockchain Seeks to Collaborate with TradFis
Stellar believes that traditional financial institutions can work alongside their blockchain counterparts in a mutually beneficial collaboration – where one could provide industry stability. In contrast, the other can work on cutting-edge innovations.
The open-source payment network is the only layer-1 blockchain admitted to GMAC – an opportunity it vowed to use to bring the perspective of its peers to the regulator’s attention – including the challenges of working as a base infrastructure for supporting decentralized applications (dApps.)
In direct contrast, while CFTC is engaging industry players, the SEC is taking a different stance – in light of the ongoing legal tussle against Ripple and its executives. The agency sued the blockchain in 2020 for allegedly selling its token XRP as a security. In the matter – which is expected to be a game-changer – Ripple’s top executive and defendant Brad Garlinghouse recently expressed optimism that the ruling would come in the year’s first half.