CFTC will focus on DeFi market to deal with potential risks
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The U.S. Commodity Futures Trading Commission (CFTC) will focus on the decentralized finance (DeFi) market.
January 8, CFTC Advisory Committee is called It is hoped that regulatory agencies and governments will pay attention to DeFi and understand how the decentralized financial market operates.
“Since I came to the CFTC, I have been a constant advocate that we need to examine new issues related to digital assets or we may face unintended and harmful consequences.”
Christy Goldsmith Romero, Commissioner, U.S. Commodity Futures Trading Commission (CFTC)
To this end, the initiative’s authors called on commissioners to produce a report to help authorities understand the state of DeFi.
The report notes that the benefits and risks of defi largely depend on the design and functionality of the specific system. The main problem associated with DeFi systems is the lack of clear responsibilities and accountability, which should be avoided in some industry projects.
The publication will be the first report from a government advisory committee on decentralized financial markets.
In December 2023, CFTC Chairman Rostin Behnam said that most digital assets can be considered commodities. He also acknowledged a turf war with the U.S. Securities and Exchange Commission (SEC) over regulatory authority over the cryptocurrency industry.
Benham acknowledged that turf wars among regulators are one of the main issues with cryptocurrency regulation in the United States. Especially between the SEC and the CFTC. Departments cannot agree on who will hold the cryptocurrency industry.
