Coinbase CEO Defends DeFi And Asks Courts To Set Legal Precedent
Coinbase CEO Brian Armstrong expressed support for decentralized finance (DeFi) protocols.. In a recent post on social media, Armstrong urged DeFi protocols to consider legal court proceedings to set a precedent, as the legal system has always demonstrated its dedication to maintaining the rule of law.. The current approach takes away a significant industry in foreign jurisdictions, he said.
According to you PUBLICATIONS on and it is questionable whether the Merchandise Exchange Law still applies to them.
The CFTC should not be creating enforcement actions against decentralized (DeFi) protocols. These are not financial service businesses, and it’s highly unlikely the Commodity Exchange Act even applies to them.
My hope is these DeFi protocols take these cases to court to…
— Brian Armstrong (@brian_armstrong) September 13, 2023
The CFTC should not take enforcement actions against decentralized (DeFi) protocols. These are not financial services businesses, and it is unlikely that the Commodity Exchange Act will apply to them. My hope is that these DeFi protocols will take these cases to court to…
Last week, the US CFTC took action against three DeFi companies for engaging in allegedly unauthorized cryptocurrency derivatives trading.. According to the regulator, these platforms allow illegal trading of crypto derivatives without required registration.
In addition to Brian Armstrong, some legislators have also shown their support for DeFi protocols. Republican Commissioner Summer Mersinger emphasized the importance of the CFTC focusing on establishing transparent regulations for DeFi, rather than quickly resorting to coercive measures. Mersinger expressed concern that the commission appears to be leaning towards repressive measures, while, in his opinion, the main objective should be to interact with the public and establish clear guidelines.
The US CFTC recently achieved a legal victory by launching investigations into major players such as Coinbase and Binance in a case against Ooki DAO for operating an illegal platform of trade and contravention of other regulatory guidelines.. In June 2023, a federal judge also ruled in favor of the CFTC, resulting in the closure of Ooki DAO and the imposition of a fine of more than $600,000.
In recent months, cryptocurrency companies have faced increased scrutiny from US regulators. In particular, regulatory bodies such as the US SEC have launched investigations into major players such as Coinbase and Binance.
