March 8, 2023 Market Risk Advisory Committee Meeting

Commissioner

Caroline D. Pham

Chairman

Rostin Behnam

Commissioner

Christy Goldsmith Romero

Commissioner

Kristin N. Johnson

Commissioner

Summer K. Mersinger
Global Markets Advisory Committee

Welcome
Global Markets Advisory Committee

Section One – Cybersecurity and CCP Risk and Governance

Opening remarks from Matthew Cronin and Caitlin Clarke, 

Office of the National Cyber Director
Global Markets Advisory Committee

CCP Risk and Governance – Panel One – Leadership Perspectives
Global Markets Advisory Committee

CCP Risk and Governance – Panel Two – Regulatory Perspectives
Global Markets Advisory Committee

CCP Risk and Governance – Panel Three – CCP Risk and Governance Subcommittee
Global Markets Advisory Committee

CCP Risk and Governance

MRAC Member Open Discussion
Global Markets Advisory Committee

Section Two – The Future of Finance

Opening Remarks from Chris Hayward, City of London Corporation
Global Markets Advisory Committee

Future of Finance – Panel One – Developing a Regulatory Framework for 

Digital Assets – Critical Policy Considerations
Global Markets Advisory Committee

Future of Finance – Panel Two – Moving Beyond Common Use Cases: DeFi, Digital 

Identity, Interoperability and More on Distributed Digital Ledger and 

Blockchain Technology –Emerging Uses and Market-Tech Trends
DISCLAIMER

The following analyses and views are those of the 

presenters and do not necessarily reflect the views of the 

Commission, its Commissioners or CFTC staff.

11




Stellar Aid Assist

Use Cases on the Stellar Network 

Market Risk Advisory Committee, U.S. Commodity Futures Trading Commission.

March 8, 2023
Stellar Aid Assist

Stellar Aid Assist is a first-of-its-kind aid disbursement system powered by the Stellar blockchain 

network — supported by Circle’s USDC, Vibrant wallet, and MoneyGram International — that enables 

the delivery of urgently-needed assistance to vulnerable and displaced populations quickly and 

transparently. 

2

Stellar Aid Assist

Digital dollars issued by 

Circle on Stellar network

Digital dollars distributed 

to approved recipients 

on Stellar

Aid recipients receive 

funds instantly in digital wallets

Withdraw cash at any MoneyGram 

location when needed or send to 

bank account
Stellar Aid Assist

Bitwage, a crypto payroll provider built on Stellar, is 

creating a way for professionals to receive income 

payments using blockchain technology. Bitwage allows 

for simple, fast, and low-cost payroll option for 

international workforces, and for remote workers to 

receive any percentage of their salaries in digital 

dollars or USDC.

3

BitWage
Stellar Aid Assist

Arf, a global settlement platform built on the Stellar blockchain, leverages stablecoins to allow money 

service businesses (MSBs) and international money transfer operators (IMTOs) to make settlements 

instantly between bank accounts, e-wallets, and cash pickup points. Arf enables MSBs to build APIbased cross-border financial operations and treasury management.

4

Arf
Stellar Aid Assist

Tala offers traditionally unbanked communities access to 

financial services in Kenya, Mexico, India, and the Philippines. 

Tala currently operates on traditional rails and is in the process 

of expanding their offerings onto the Stellar blockchain using 

stablecoins to help customers with borrowing, spending, saving, 

investing, sending, and receiving money.

5

Tala
Stellar Aid Assist

Asset issuers can use built-in features to:

● Approve Users 

● Freeze Accounts

● Clawback Assets

● Require multiple signatures for certain transactions

● Register transactions for future settlement

● Add memos to transactions to provide public details

6

Asset Issuer Tools Allow for Broader Adoption
Stellar Aid Assist

How Identity Works

CFTC MRAC Presentation

March 8, 2023

Linda Jeng

Chief Global Regulatory Officer & General Counsel

Crypto Council for Innovation

Self-custodied

Decentralized Decentralized
Stellar Aid Assist

How Identity Works

Identity themes 

Preventing fraudulent (or sanctioned) users from transacting

Reducing friction for legitimate users

Avoiding doxxing

New approach, improved outcomes for individuals

Convenience, privacy

Path to more equitable access

From consumer perspective, with demo

How do we roll this out more broadly?

Self-custodied

Decentralized Decentralized
Stellar Aid Assist

Digital Identity

Represent who we are in 

online or remote 

interactions

Such as online banking
Stellar Aid Assist

“The Internet was built 

without an identity 

layer.”

—Kim Cameron, The Laws of 

Identity, May 2005

Missing rails of trust
Stellar Aid Assist

Problems:

They are not ours

We have to trust their ability to safeguard

Trust is uni-dire

Centralized 

Identity

●Phases:

○ Onboarding: who are you?

○ Afterward / Authentication: 

are you who you claim to be

●Username + 

password

●Each organization/SP
Stellar Aid Assist

Federated 

Identity (*) Managing many login 

creds is risky individuals & orgs Single sign on (SSO) + Convenience, security - IDP better get it right + MFA, Biometrics

Identity Provider / 

Organization

Organization

Organization

Login with XYZ
Stellar Aid Assist

Problems 

remain Only basic attributes Minimal reuse for similar 

services Incentives => platform 

lockin Fragmentation
Stellar Aid Assist

Plus new 

downsides More complete picture 

of our online activities Appealing to advertisers Personal data 

vulnerable to brokers 

and hackers

Data Brokers

Hackers
Stellar Aid Assist

Digital Identity Report Card

Fraud

Difficulty/delays at enrolment

F Friction

Unidirectional assurance; Identity 

fraud and theft

Fracture

Proliferation of our personal data, 

outside of our control

Uneven access

F

F

From a Financial Consumer Perspective

F

Increased costs to providers passed 

onto consumer

Fees
Stellar Aid Assist

Self-Managed Identity

The alternative based on mutually 

established trust
Stellar Aid Assist

Roles and Flow

Issuers Verifiers

Issue portable 

credentials without PII Can independently verify 

credentials are authentic, 

tamper-free

Request 

proof

Request credential

● Chose what they share, with 

whom

● Manage their credentials in digital 

wallets

Verifiable People

Credentials
Stellar Aid Assist

Collect a KYC 

Credential

Amanda has been a customer for 

ten years at her local community 

bank, First Community Bank.

She requests a KYC credential 

from First Community Bank.
Stellar Aid Assist
Stellar Aid Assist

Share KYC 

Credential with a 

Mortgage Lender

Amanda shares her KYC credential 

from First Community Bank to Trust 

Mortgage
Stellar Aid Assist
Stellar Aid Assist

Summary

First Community Trust Mortgage

Request 

proof

Request credential

Amanda KYC Credential
Stellar Aid Assist

Financial 

Institutions

Government 

Agencies

Employers and 

Educators

Social Networks 

and Peers

Verifiable Credentials
Stellar Aid Assist

Enabled by public 

open standards

Open standards enable open, interoperable 

ecosystems

Decentralized identity standards provide a 

user-centric solution for the internet's missing 

identity layer
Global Markets Advisory Committee

Future of Finance

MRAC Member Open Discussion
Global Markets Advisory Committee

Section Three – Climate-Related Market Risk, Market Structure and Interest Rate 

Benchmark Reform

Opening Remarks from Scott O’Malia, ISDA
Global Markets Advisory Committee

Climate-Related Market Risk
Global Markets Advisory Committee

Climate-Related Market Risk

MRAC Member Open Discussion
Global Markets Advisory Committee

Market Structure 

Treasury Market Developments and Swaps Block Transactions
Global Markets Advisory Committee

Market Structure 

MRAC Member Open Discussion
Global Markets Advisory Committee

Interest Rate Benchmark Reform

Update on Transition Progress and Last Steps
Global Markets Advisory Committee

Adjournment