The head of the CFTC recalled the importance of oversight of DeFi projects


Chairman of the Commodity Futures Trading Commission (CFTC), Rostin Benham, stated the advisability of regulating the activities of DeFi protocols. The Block writes about this.

He compared the situation in the sector to seeing an “unlicensed doctor.”

“We must not wait for victims to appear. We must be proactive and ensure critical market oversight, strong cybersecurity and system safeguards, and customer protection. This is our mission […]. If you need an analogy, think: Would you feel comfortable on the road if only some people were required to have a license? Or, if you had a choice, would you trust an inexperienced or unlicensed doctor.” – said Benham.

In May, the CFTC Chairman said DEXs would be regulated by his agency or SECeven if the platforms operate autonomously or with minimal human intervention.

Before Benham, CFTC Enforcement Director Ian McGinley spoke in a similar vein. In September, the official called unregulated decentralized finance exchanges a “clear threat” to markets and customers.

McGinley recalled the cases of the Polymarket and Ooki DAO projects, which the Commission had previously pursued. In September, Opyn, ZeroEx and Deridex were added to this list.

Let us recall that in the same month, the head of the SEC’s enforcement department, David Hirsch, warned that the agency was examining the activities of DeFi protocols for violations of the law.

Previously, a group of senators proposed requiring decentralized finance services to comply with AML.

Found an error in the text? Select it and press CTRL+ENTER

ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!

Leave a Reply