Rostin Behnam of CFTC Stresses Need for Regulatory Oversight in DeFi
Commodity Futures Trading Commission Chair Rostin Behnam emphasized the necessity of regulating decentralized finance (DeFi) in a speech on Monday, drawing parallels to the risks of unlicensed physicians.
Speaking at the Futures Industry Association Expo in Chicago, Behnam’s remarks followed the agency’s recent actions against DeFi protocols Opyn, ZeroEx, and Deridex for registration violations. He stressed the importance of proactive oversight, robust cybersecurity, and customer protection, highlighting the need for comprehensive market regulation. Behnam’s analogy compared the situation to having unlicensed drivers on the road or entrusting healthcare to untrained physicians.
This spotlight on DeFi by the CFTC has stirred debates, with Coinbase CEO Brian Armstrong urging the protocols to challenge the enforcement actions in court, and the agency’s Enforcement Director Ian McGinley labeling unregulated DeFi exchanges as a significant threat to the markets and customer protection.
Clever Robot News Desk 4th October 2023
