CFTC (Commodity Futures Trading Commission) Chairman Rostin Behnam emphasized in his statements on Bloomberg’s Odd Lots podcast that decentralized finance (DeFi) cryptocurrency exchanges, even those that are purely based on code, could be subjected to and regulated under US laws. He highlighted that these DeFi protocols have responsibilities concerning the products and risks they offer to customers in the United States.
“Considering it solely as code without any institution or individual is a highly inaccurate approach.”Rostin Behnam
He also emphasized that the individuals or groups behind DeFi platforms should take responsibility for the products they offer to US citizens. He further highlighted the commitment to make every effort to hold malicious actors accountable for their actions.
Will the US government impose new regulations on the cryptocurrency industry?
CFTC Chairman Rostin Behnam’s statements regarding the regulation and responsibilities of DeFi cryptocurrency exchanges indicate that the US government is closely monitoring the crypto sector and is ready to take steps towards regulation. His emphasis on even DeFi protocols being subject to US laws, despite being considered purely as code, indicates that there may soon be legal pressure on individuals or companies operating in this field.
We have limited authority to oversee crypto markets
The CFTC Chairman also stated that the crypto space is an area that can be regulated by the CFTC. He mentioned having the authority to regulate cash markets but acknowledged that his authority is limited when it comes to overseeing cash cryptocurrency markets.
Previously, the CFTC had filed a lawsuit against Binance, a centralized exchange, for allegedly operating in the US without being registered. Behnam cited this case as an example, highlighting that the CFTC is committed to fighting against individuals who do not comply with the laws.
“We need to rely on existing legal precedents and analyses to determine whether digital assets are securities or commodities.”Rostin Behnam
Additionally, the CFTC Chairman stated that digital financial assets have unique characteristics and require unique ideas and policy approaches in terms of how they should be regulated.
As a result of these statements, it appears that the CFTC (Commodity Futures Trading Commission) will make further efforts towards the regulation of DeFi and crypto assets.