CFTC Commissioner Advocates Public Engagement for DeFi Rulemaking

CFTC Commissioner Summer Mersinger raises concerns about the agency's enforcement actions on DeFi protocols and advocates for public and stakeholder engagement through rulemaking.

Posted 10 months ago in DeFi and CeFi

United States Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger expressed her concerns about the agency's approach to decentralized finance (DeFi) protocols. In a public statement, she emphasized the importance of engaging with the public and stakeholders through rulemaking instead of solely relying on enforcement actions. Mersinger believes that enforcement actions are not the most appropriate method for addressing novel DeFi technology. She argues that the CFTC should prioritize public and stakeholder engagement, utilizing regulatory tools and rulemaking to navigate the complexities of DeFi. While Mersinger supports the application of the Commodity Exchange Act and CFTC rules to protect market participants, she notes that recent enforcement actions did not uncover any misappropriation of customer funds or victimization of market participants by the DeFi protocols. The commissioner also raises concerns about the regulatory jurisdiction over DeFi protocols and emphasizes the need for clear rules. She emphasizes that enforcement without transparent rulemaking could have potential consequences. Despite these concerns, the CFTC's regulatory agenda for spring 2023 does not include any rulemaking activities related to DeFi, leaving these issues unaddressed. Recently, the CFTC announced regulatory action against three DeFi protocols - Opyn, ZeroEx, and Deridex - for allegedly failing to register various derivatives trading offerings. Deridex and Opyn face charges for not registering as swap execution facilities or designated contract markets, as well as failing to register as futures commission merchants. The CFTC also accused these protocols of noncompliance with customer provisions outlined in the Bank Secrecy Act.

Last updated 9/9/2023, 3:17:04 AM

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