US Federal Trade Commission Forms Blockchain Working Group

Announcements, Blockchain, Investing, News, Regulation | March 20, 2018 By:

In response to a lawsuit against four individuals accused of cryptocurrency related fraud, the US Federal Trade Commission is forming a working group on blockchain issues.

“It is no surprise that fraudsters might use cryptocurrencies in their scams,” said an FTC blog post from Neil Chilson the acting chief technologist of the agency. “As the primary federal general consumer protection agency, the FTC has seen this pattern before. Fraudsters often attempt to capitalize on the excitement and confusion around hot new technologies, and they are quick to dress up old schemes in the clothes of the latest and greatest innovations.”

Chilson said because the scams affect the FTC work across the agency, they have created an internal FTC Blockchain Working Group.  “The working group has at least three goals. First, build on FTC staff expertise in cryptocurrency and blockchain technology through resource sharing and by hosting outside experts. Second, facilitate internal communication and external coordination on enforcement actions and other related projects. And third, serve as an internal forum for brainstorming potential impacts on the FTC’s dual missions and how to address those impacts.”