The CFTC has charged three DeFi protocols for violating financial laws as the CFTC Commissioner calls for the launch of a pilot program to explore cryptocurrency regulation.
- The U.S. Commodity Futures Trading Commission has announced new enforcement actions against three decentralized finance protocols for allegedly failing to register various derivatives trading offerings, according to a release from the regulator.
All three platforms were also charged with illegally offering leveraged and margined retail commodity transactions in digital assets. “Somewhere along the way, DeFi operators got the idea that unlawful transactions become lawful when facilitated by smart contracts,” said Director of Enforcement Ian McGinley. “They do not. The DeFi space may be novel, complex, and evolving, but the Division of Enforcement will continue to evolve with it and aggressively pursue those who operate unregistered platforms that allow U.S. persons to trade digital asset derivatives.
Pham went on to propose the CFTC launch “the first-ever U.S. pilot program for digital asset markets.” “It’s time to take action,” she said. “A pilot program can create a safe framework for emerging technologies and market structures under our existing laws and regulations.” “In line with our previous pilot initiatives, I am optimistic that this approach will ensure the integrity of our markets and impartial access, foster liquidity and competition, address potential conflicts and risks, and prevent fraud, abusive practices, and manipulation,” she added.
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