U.S. CFTC Releases Report Suggesting Betterment of DeFi

In a report published on January 08, 2023, the regulatory institution regulating futures, swaps and options in the U.S., the Commodity Futures Trading Commission (CFTC) suggested that policymakers should figure out a way to identify the individuals involved in DeFi ( Decentralized Finance).  

The report urges that policymakers should recognize and organize projects of greatest concern and focus on digital identity, know your customer (KYC) and anti-money laundering (AML) regime and calibration of privacy in DeFi. 

The CFTC’s research emphasizes the absence of responsibility and accountability in the DeFi industry claiming that this uncertainty creates a danger to consumers, investors, financial stability and market integrity.  

The report advocates for prompt coordination between the government and industry players to solve the challenges. Lawmakers should initiate and mark significant steps in addressing the challenges originating in Decentralized Finance.   

The director of Policy at Paradigm and a member of CFTC tech advisory group, Justin Slaughter called the report “the first major report on DeFi by a government advisory committee and is arguably the most comprehensive review of DeFi by any U.S. government agency so far”.

He acknowledged that the committee proposal lacks legal authority, but described the study as a “major step forward for lawmaking on DeFi”. The reports also recommended investigative alternatives for regulating and implementing standards for identity information discoverability and verification at all layers of the ecosystem.   

Other Recent News Associated With DeFi

A DeFi lending company Altitude has announced that it has secured $6.1 Million in its seed funding round. 

InQubeta, an evolving decentralized finance (DeFi) platform, has reached a critical financial milestone by generating more than $8 Million through a presale of its native QUBE tokens. 

Over 700 Million tokens were sold during the presale event, each priced at $0.01925, with investors driven to the platform’s deflationary token strategy and the strong mood in the larger market.

In an effort to transform the decentralized trading market, Fyda Finance, a rising power in the decentralized finance (DeFi) space, has introduced its ground-breaking automated trading platform. 

With the help of this cutting-edge platform, users may automate their trading processes in a safe and reliable environment while exploring the world of sophisticated trading methods. It gives customers the capacity to use a wide range of tactics, from basic purchase orders to more complex methods like dollar-cost averaging.

DeFi apps are made to interface with a blockchain, enabling users to use their funds independently of a third party for trade, gifting, loans, and other uses.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.