<\/p>\n
Coinbase CEO Brian Armstrong urged the U.S. Commodity Futures Trading Commission (CFTC) against \u201ccreating enforcement actions against decentralized (DeFi) protocols\u201d because \u201cit\u2019s highly unlikely the Commodity Exchange Act\u201d applies to them, according to a Sept. 14 post<\/a> on X (formerly Twitter).<\/p>\n According to Armstrong, these protocols are not \u201cfinancial service businesses\u201d and should take these cases to court to \u201cestablish precedent.\u201d \u201cThe courts have proven to be very willing to uphold [the] rule of law,\u201d he added.<\/p>\n Armstong\u2019s statement is coming on the heels of the recent unregistered derivatives trading charges<\/a> filed by the CFTC against three DeFi protocols, including Opyn, Deridex, and ZeroEx.<\/p>\n In bringing the charges, the regulator\u2019s director of enforcement, Ian McGinley, said, \u201cDeFi operators got the idea that unlawful transactions become lawful when facilitated by smart contracts.\u201d<\/p>\n McGinley restated his position about these protocols in a recent speech<\/a> at the Practising Law Institute, where he said unregulated DeFi exchanges pose an \u201cobvious threat.\u201d In his words:<\/p>\n \u201cThe existence of unregulated DeFi exchanges is an obvious threat to the markets regulated and customers protected by the CFTC, and it is one we have taken very seriously.\u201d<\/p>\n<\/blockquote>\n The CFTC\u2019s recent approach to the crypto industry is similar to actions taken by its sister regulatory agency, the U.S. Securities and Exchange Commission (SEC), which has brought several enforcement actions against major crypto companies like Binance<\/a> and Coinbase<\/a>.<\/p>\n Market observers have increasingly criticized<\/a> the SEC\u2019s approach, with many urging lawmakers to hand over the emerging industry\u2019s oversight<\/a> to the CFTC.<\/p>\n However, Delphi Labs general counsel Gabriel Shapiro warned<\/a> that the \u201cCFTC would be an even worse regulator for crypto than the SEC.\u201d According to him, the Commission is well-informed about crypto and DeFi facts, and he is convinced<\/a> that the \u201cCFTC views DeFi as illegal in the U.S. for commodity derivatives.\u201d<\/span><\/p>\n The post Coinbase CEO Brian Armstrong questions CFTC jurisdiction over DeFi protocols<\/a> appeared first on CryptoSlate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Coinbase CEO Brian Armstrong urged the U.S. Commodity Futures Trading Commission (CFTC) against \u201ccreating enforcement actions against decentralized (DeFi) protocols\u201d because \u201cit\u2019s highly unlikely the Commodity Exchange Act\u201d applies to them, according to a Sept. 14 post on X (formerly Twitter). According to Armstrong, these protocols are not \u201cfinancial service businesses\u201d and should take these […]<\/p>\n","protected":false},"author":2,"featured_media":155899,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-155898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/155898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=155898"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/155898\/revisions"}],"predecessor-version":[{"id":155900,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/155898\/revisions\/155900"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/155899"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=155898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=155898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=155898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}CFTC targeting DeFi protocols<\/h2>\n
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Will the CFTC be a worse regulator than the SEC?<\/h2>\n