Read

The U.S. Commodity Futures Trading Commission (<a href="https://crypto.news/tag/CFTC/" rel="noopener noreferrer nofollow">CFTC</a>) will focus on the decentralized finance (<a href="https://crypto.news/tag/defi/" rel="noopener noreferrer nofollow">DeFi</a>) market.
On Jan. 8, a CFTC’s Committee of Advisors <a href="https://www.cftc.gov/PressRoom/SpeechesTestimony/romerostatement010824b" target="_blank" rel="noopener noreferrer nofollow">called</a> on the regulatory body and the government to focus on DeFi to understand the workings of the decentralized finance market.
<blockquote class="wp-block-quote">
 “From the time that I arrived at the CFTC, I have played a steady drumbeat that we need to study emerging issues related to digital assets, or we could risk harmful unintended consequences.” <cite>Christy Goldsmith Romero, CFTC Commissioner</cite>
</blockquote>
To this end, the initiative’s authors have called on commissioners to generate a report that will help inform authorities on the state of DeFi.
The report states that the benefits and risks of defi largely depend on the design and features of specific systems. The main problem associated with DeFi systems is the lack of clear lines of responsibility and accountability, which should be avoided in some industry projects.
The publication will be a government advisory committee’s first report on the decentralized finance market.
You might also like: <a href="https://crypto.news/crypto-firms-prefer-to-be-regulated-by-cftc-rather-than-sec/" rel="noopener noreferrer nofollow"> Crypto firms prefer to be regulated by CFTC rather than SEC </a>
In December 2023, CFTC Chairman Rostin Behnam <a href="https://crypto.news/cftc-chair-crypto-assets-commodities-regulation/" rel="noopener noreferrer nofollow">stated</a> that most digital assets can be considered commodities. He also acknowledged a turf war with the U.S. Securities and Exchange Commission (<a href="https://crypto.news/tag/sec/" rel="noopener noreferrer nofollow">SEC</a>) over the right to regulate the cryptocurrency industry.
Behnam acknowledged that a turf war between regulators is one of the main problems with regulating cryptocurrencies in America. In particular, it unfolded between the SEC and the CFTC. The departments cannot agree on which will hold the cryptocurrency sector.
Read more: <a href="https://crypto.news/sec-and-cftc-find-clarity-in-new-legislation-to-regulate-crypto/" rel="noopener noreferrer nofollow"> SEC and CFTC find clarity in new legislation to regulate crypto </a>

CFTC to focus on DeFi market to address potential risks

crypto.news

Other articles published on Jan 9, 2024

Memeinator Presale Smashes Past $3M Mark as Crypto Market Rallies

Starknet Community Approves STRK For Gas Token

Bitcoin dips 3% on false SEC spot Bitcoin ETF approval

Credefi Finance - Celebrating 2023's Triumphs and Gearing Up for an amazing start of 2024 with it...

Helium Price Aims $10 High As Market Optimism Grows for Spot Bitcoin ETF

Samsung’s CES 2024 Unveilings – The 5 Most Bizarre Products You Won’t Believe Exist

Join our free newsletter for daily crypto updates!