ISDA has submitted a response to HM Treasury’s consultation and call for evidence on the UK’s regulatory approach to cryptoassets and stablecoins.
ISDA’s response highlights opportunities for the deployment of new technology such as distributed ledger technology (DLT) and smart contracts in the derivatives market.
The response also notes the importance of achieving greater legal and regulatory certainty, flagging a number of areas where legal or regulatory barriers to the deployment of new technology in financial markets currently exist.
Finally, the paper notes the importance of common, digital standards and the distribution of those standards across the industry, and describes a number of important ISDA initiatives in this area, such as the ISDA Clause Library and Common Domain Model.
The letter can be read here.
Source: ISDA