If you’re a developer who creates a blockchain application that is used for a criminal activity, you should be prosecuted, said the head guy at the Commodity Futures Trading Commission.

Brian Quintenz made this personal, not official, assertion during the GITEX Technology Week Conference in Dubai. In his speech, Quintenz discussed how to fit cryptocurrencies and smart contracts into the CFTC’s supervisory framework.

The U.S. federal agency regulates futures and option markets.

Who should be held responsible when a smart contract violates CFTC regulations? Developers of those decentralized applications, or dapps, should be prosecuted, Quintenz said.

His assertion does not apply to the core developers of the underlying blockchain protocol, miners and the blockchain’s general users, he added. None of these groups should be held responsible for monitoring the activity of other network users.

But if the CFTC can demonstrate the developers could “reasonably foresee, at the time they created the code, that it would likely be used by U.S. persons in a manner violative of CFTC regulations,” that person is in big trouble.

To put it another way, he said, “Think of someone asking you to borrow the keys to your car because they want to rob a bank.”

ThirtyK Staff
If you would like to contact the ThirtyK News Brief team, please email us at contact@thirtyk.com.