One of the top U.S. financial regulators, the Commodity Futures Trading Commission (CFTC), has released its second guide to understanding smart contracts, with a reminder that the technology is covered under financial rules.
Announced Tuesday, the primer is part of agency’s fintech initiative LabCFTC. Described as an "educational tool" rather than official policy, it covers the basics of blockchain smart contracts including their history, characteristics, case studies, potential use cases and perceived risks.
Stating that the concept of a smart contract was discovered some 20 years ago by computer scientist Nick Szabo, the CFTC states that the self-executing programs are only as smart as the “information feed it receives and the machine code that directs it.”