US authorities analyzed options for managing the DeFi market

by in DeFi News

USA

The Advisory Council to the US Commodity Futures Trading Commission (CFTC) considered options for implementing a regulatory framework for the DeFi decentralized finance market.

The meeting participants heard a report, which said that the impact of DeFi on the global financial system is increasing. Therefore, it is no longer possible to ignore this market. The authorities need to expedite the implementation of appropriate regulations to protect the interests of token holders.

The authors of the report noted that, unlike banks, DeFi projects use smart contracts to reduce operating costs and fulfill obligations. It is necessary to introduce responsibility for those users of the market who pose threats to the rest of its participants.

At the same time, the CFTC believes that regulation should be introduced without creating threats to innovative businesses that penetrate the crypto sphere. The biggest problem for the commission is determining the degree of responsibility for specific violations.

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For example, Gary Devol, representing the Subcommittee on Virtual Currencies, noted that responsibility would need to be introduced primarily for the developers of the DeFi protocols.

The second problem is control over transactions with tokens. It is not yet clear how the regulator will be able to control the transactions with coins launched in the DeFi ecosystem.

As a result of the meeting, it was decided not to rush into the implementation of the DeFi market regulation, so as not to strike the industry. A wait-and-see attitude will help the expert community and the authorities to focus on resolving the difficulties associated with monitoring and determining the responsibility of unscrupulous market participants.