TechFlow news, according to The Block, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam emphasized the importance of regulating decentralized finance (DeFi) during a speech at the Futures Industry Association expo in Chicago, likening it to "unlicensed doctors."
The remarks come after the agency, one month prior, announced settlements resolving registration violations by DeFi protocols Opyn, ZeroEx, and Deridex.
Behnam stated that waiting for victims to suffer losses and cry out before taking action to ensure market oversight, cybersecurity, and customer protection undermines the mission of regulatory agencies.
In the past month, CFTC's enforcement actions against DeFi have sparked controversy. Coinbase CEO Brian Armstrong urged the three firms to take their cases to court, arguing regulators should not bring enforcement actions against decentralized protocols. Meanwhile, CFTC Enforcement Director Ian McGinley described unregulated DeFi exchanges as an "obvious threat."
"Unregulated DeFi exchanges pose an obvious threat to the markets regulated by the CFTC and the customers we are entrusted to protect," said CFTC Enforcement Director Ian McGinley at a meeting in September.
