- The U.S commodities watchdog CFTC has included DeFi on its upcoming meeting’s agenda
- CFTC wants to use its newly-formed technology team to scrutinize the DeFi world
- The meeting is scheduled for March 22 and will include executives from the cryptocurrency industry
The United States commodities watchdog the Commodities Futures Trading Commission (CFTC) has included decentralized finance (DeFi) on its upcoming meeting’s agenda indicating an intention to scrutinize the sector. The meeting scheduled for March 22, will bring together the CFTC’s Technology Advisory Committee (TAC) and some executives in the crypto industry. The CFTC’s move to explore the space may be due to the occasional DeFi scams and exploits that involve millions of US dollars.
DeFi Weak Points and Non-custodial Wallets
According to an announcement, the tech panel will “thoughtfully and holistically” look into issues plaguing the decentralized world, with the CFTC’s Christy Romero noting that discussions around DeFi will include its weak points, “unhosted wallets” and factors that a platform must meet for it to be considered decentralized.
Join us 3/22 (webcast) to hear presentations from experts on Cybersecurity: The ION Markets Attack and Beyond, Exploring Decentralized Finance, and Responsible Artificial Intelligence https://t.co/iwQvR6fSv2
— Commissioner Christy Goldsmith Romero (@CFTCcgr) March 1, 2023
Crypto executives expected to share their thoughts in the meeting are drawn from companies such as Trail Of Bits, Fireblocks and TRM Labs which are spread across the security, custody, and blockchain intelligence fields respectively. Another panel will discuss the impact of artificial intelligence (AI) in the U.S. financial market “and the emerging threat of AI-enabled cyber attacks.”
CFTC or SEC?
The formation of the tech committee adds some muscle to the CFTC’s bid to lead crypto regulations in the United States, with the country’s securities regulator SEC also positioning itself to be in control. However, SEC’s head Gary Gensler previously said that they’ll buddy up with the CFTC to regulate aspects of the crypto world.
The U.S. president Joe Biden has in the past asked regulators to support digital assets-based developments which may have necessitated the creation of a special CFTC outfit to look into DeFi.
Although it’s an inaugural meeting, its findings will help shape the regulator’s view of the sector and hence a softer and an informed approach when formulating regulations.