The Technology Advisory Committee of the Commodities Futures Trading Commission (CFTC) in the United States is scheduled to organize a meeting on March 22, 2023, to discuss the growing decentralized finance (DeFi) industry.
— Blockchain Daily (@blckchaindaily) March 2, 2023
The Meeting Attendees
During the meeting, a panel composed of industry experts will analyze the various challenges presented by DeFi, with a particular emphasis on issues such as cyber vulnerabilities, decentralization, digital identity, noncustodial crypto wallets, and exploits. The CFTC has extended invitations to numerous industry executives, including representatives from Fireblocks, Trail of Bits, Terranet Ventures, TRM Labs, and Metrika, to deliver presentations during the meeting.
The Commodities Futures Trading Commission (CFTC) has been expanding its regulatory reach in the crypto space and has requested oversight of the industry from the Securities and Exchange Commission (SEC). The CFTC has argued that it is well-suited to address regulatory shortfalls and has urged Congress to grant it oversight of the crypto sector. The chairman of the CFTC, Rostin Behnam, has justified the commission’s authority in the crypto sector, citing the global nature of crypto markets and the CFTC’s ability to collaborate with regulatory counterparts abroad to address emerging regulatory challenges.
CFTC’s Stance on Crypto
The CFTC has been regarded as taking a more accommodating stance towards the crypto sector when compared to the SEC. Bitcoin and Ether have been classified as commodities by the CFTC, with the commission being responsible for regulating their futures contracts. On the other hand, the SEC has taken a more cautious approach towards crypto, delaying its decision to approve a Bitcoin ETF and taking action against ICOs that are deemed to be unregistered securities.
In February 2023, the CFTC held its inaugural meeting to discuss digital asset markets. CFTC Commissioner, Caroline Pham highlighted the importance of policymakers understanding the borderless nature of crypto markets to avoid leaving Americans behind and playing catch-up. The meeting delved into the need for regulatory clarity and emphasized the importance of regulators collaborating to ensure a level playing field for all market participants.