DEFIREGULATION

Is DeFi Regulation Imminent? CFTC's Technology Advisory Committee Releases First DeFi Report

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Is DeFi Regulation Imminent? CFTC

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CFTC's Technology Advisory Committee Releases First DeFi Report

The Technology Advisory Committee under the U.S. Commodity Futures Trading Commission (CFTC) has submitted a comprehensive report on DeFi issues to the CFTC. Commissioner Christy Goldsmith Romero stated that the report aims to provide clearer information for the U.S. Congress, state legislatures, and regulatory bodies including the CFTC.

The report includes recommendations for legislation and regulators, such as DeFi-related knowledge, enhancing the timeliness and effectiveness of enforcement, and assessing the existing federal and state regulatory frameworks in the DeFi space to identify areas where regulatory scope needs to be expanded to address risks.

Ari Redbord, Head of Legal and Government Affairs at TRM Labs and Vice Chair of the CFTC's Technology Advisory Committee, stated:

In recent years, global legislators have established regulatory frameworks for crypto, but the focus has been almost entirely on centralized exchanges.

Paradigm: Most Comprehensive Review of DeFi by U.S. Government to Date

Justin Slaughter, Policy Director at Paradigm and member of the CFTC's Technology Advisory Committee, emphasized the significance of this report for the CFTC:

This report can be considered the most comprehensive review of DeFi by the U.S. government to date. While it does not have legal force, it will be a key factor in shaping DeFi policies.

Justin Slaughter pointed out that the report does not provide a clear definition for DeFi, but rather offers a framework and scope to measure the degree of decentralization of a project. He is optimistic about this approach, believing it to be an important step towards establishing comprehensive DeFi regulations.