A New Era of Regulation: Avery Ching Joins the CFTC’s Digital Asset Panel

Avery Ching isn’t just shipping code anymore. The co-founder and CEO of Aptos has recently been appointed to the Commodity Futures Trading Commission’s (CFTC) Digital Asset Markets Subcommittee. This appointment marks a significant shift in how regulatory frameworks may evolve, with the involvement of builders and technologists in shaping the rules governing digital assets.

A Key Appointment in the Crypto Landscape

On June 30, Aptos Labs announced the exciting news of Ching’s role in the CFTC’s subcommittee. This group is part of the CFTC’s broader Global Markets Advisory Committee, which includes industry giants such as BlackRock, Goldman Sachs, and Citadel. It has also welcomed influential figures from the cryptocurrency world, including Rebecca Rettig from Polygon Labs and Christopher Perkins from CoinFund.

Ching’s role is especially critical as he represents the builder’s perspective—a voice often overshadowed by the entrenched interests of legal and financial incumbents. His appointment signals a potential alignment in policy development that favors innovation and an understanding of blockchain technology’s peculiarities.

The CFTC’s Approach to Crypto Regulation

Ching’s arrival at the CFTC is particularly timely. The SEC has taken a heavy-handed approach to enforcement, consistently clamping down on various cryptocurrency projects. In contrast, the CFTC has been more open and inviting, gradually expanding its crypto oversight with a lighter regulatory touch, particularly for widely recognized assets like Bitcoin (BTC) and Ethereum (ETH).

With Ching now positioned within the Digital Asset Markets Subcommittee, the CFTC has access to a technologist who comprehends not just the financial implications of digital assets but also the technical challenges inherent in decentralized systems. His insights can help bridge the gap between innovative tech and the established norms of traditional finance.

A Background in Blockchain Innovation

What sets Ching apart is his deep-rooted experience in blockchain infrastructure. Before co-founding Aptos, he served as a principal engineer in Meta’s Diem project (formerly known as Libra). During that time, he navigated numerous regulatory hurdles associated with launching a global stablecoin. This background equips him with a nuanced understanding of both the technical and compliance challenges that the evolving digital landscape presents.

At the CFTC, Ching will collaborate with notable figures like Tony Sio from Nasdaq and Sandy Kaul from Franklin Templeton. This coalition aims to integrate the innovative spirit of the crypto space with the established rules of Wall Street, potentially reshaping how regulation interacts with technology.

Aptos’ Groundwork in Regulatory Relevance

While Ching’s new role is a fresh development, Aptos has been quietly setting the stage for regulatory engagement. The project recently emerged as the top blockchain candidate for Wyoming’s WYST (the first fiat-backed stablecoin issued by a U.S. state). This recognition demonstrates Aptos’ increasing relevance in discussions surrounding stablecoin regulation.

Additionally, the filing by Bitwise for an Aptos-linked ETF reflects a surge of institutional interest in the project, despite the SEC’s ongoing deliberations over broader crypto ETFs. Aptos already hosts three USD-pegged stablecoins on its Layer 1 blockchain, a key factor that is likely capturing the attention of regulators as stablecoin oversight becomes an area of heightened scrutiny.

The Challenge Ahead

Ching’s first challenge on the CFTC subcommittee may involve contributing to the ongoing work on stablecoin and Central Bank Digital Currency (CBDC) frameworks. The subcommittee began this standardization process in March 2024, and with initiatives like Wyoming’s WYST and the potential for an Aptos-related ETF, Ching’s insights could have a profound impact on shaping how regulators approach blockchain-native financial instruments.

In an era where traditional regulatory frameworks face the pressure of rapid technological advancements, the inclusion of visionary builders like Avery Ching in positions of influence offers a hopeful glimpse into a balanced and informed regulatory future for digital assets.