Coinbase CEO Brian Armstrong has expressed his views concerning the US Commodity Futures Buying and selling Fee (CFTC) enforcement actions in opposition to DeFi protocols. He hopes protocols take the CFTC to courtroom to combat the enforcement actions.
In a latest social media publish, Armstrong encourages DeFi protocols to contemplate authorized proceedings in courtroom to set a precedent, because the authorized system has persistently demonstrated its dedication to upholding the rule of legislation. The present strategy is principally pushing a vital business towards worldwide jurisdictions.
Along with his publish, the Coinbase CEO believes that the US CFTC ought to keep away from taking enforcement in opposition to DeFI protocols as they don’t perform as a traditional monetary service enterprise and it’s additionally questionable whether or not the Commodity Trade Act is even relevant to them.
Earlier than the CEO assertion, the US CFTC allegedly took motion in opposition to three DeFi corporations for allegedly partaking in unauthorized buying and selling of cryptocurrency derivatives. In accordance with the company, these platforms enabled the illicit buying and selling of crypto derivatives with out the required registration.
Other than Brian Armstrong, sure legislators have additionally expressed their assist for DeFi protocols. In truth, CFTC Commissioner Summer time Mersinger highlighted the significance of the CFTC concentrating on establishing clear rules for DeFi as a substitute of swiftly resorting to enforcement measures.
This ongoing problem occurred amid the heightened scrutiny that the cryptocurrency companies are dealing with now together with Coinbase and Binance by US regulators mainly the SEC. Because the DeFi sector faces these regulatory challenges, the decision for authorized motion in opposition to the CFTC guarantees to spark a strong dialogue about the way forward for DeFi inside the US.
