CFTC Chairman states that decentralized exchanges (DEX) are still subject to regulation, just as centralized ones are.

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CFTC Chairman Emphasizes Regulatory Responsibility for Decentralized Exchanges

According to The Block, Rostin Behnam, the chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated on Bloomberg's "Odd Lots" Podcast that even decentralized crypto exchanges, which are solely based on autonomously running protocols and pure code, will still fall under the regulation of the CFTC or the U.S. Securities and Exchange Commission (SEC).

CFTC Lawsuit Against Binance Draws Attention

In March, the CFTC filed a lawsuit against the centralized exchange Binance, accusing it of operating in the U.S. without being registered as a commodity exchange. Additionally, the CFTC also accused Binance of turning a blind eye to financial crimes and money laundering activities on its platform. This lawsuit has garnered widespread attention.

Read more: CFTC Lawsuit Against Binance Explained

CFTC's Clear Stance on Cryptocurrency Regulation

The CFTC chairman further clarified the CFTC's stance on cryptocurrency regulation. He indicated that the CFTC will continue to hold malicious actors accountable. However, he also noted that the CFTC will lightly regulate the cryptocurrency market that solely serves as a cash alternative, as opposed to regulating cash cryptocurrency markets. He mentioned that the CFTC's statutory mandate does not include regulating cash markets, but the CFTC still holds limited regulatory authority in cases involving fraud or manipulation.

The CFTC's regulatory stance and the lawsuit against Binance have sparked widespread attention in the cryptocurrency community, leading to discussions on the regulation of decentralized exchanges. The CFTC chairman emphasized the applicability of the law and the CFTC's regulatory responsibilities in the cryptocurrency market, highlighting the necessity of regulation to ensure the protection of customer rights.