While US regulators SEC and CFTC continue their pressure on the cryptocurrency industry, the last target of this pressure was the DeFi industry and platforms.
At this point, the speech that CFTC Chairman Rostin Behnam will give at the Futures Industry Association Fair in Chicago has been published.
According to The Block, the CFTC Chairman, who focused on the supervision of the decentralized finance sector in his published speech, compared the DeFi sector to “unlicensed doctors”.
“For the DeFi sector to be regulated, we must wait for victims to suffer and cry out for help to ensure critical market surveillance, strong cybersecurity and system protections, and customer protections are in place.
To give an analogy, consider whether you would entrust your health care to an untrained or unlicensed physician if given the choice.
At this point, unregulated DeFi platforms are a threat to investors and CFTC-regulated platforms and protected customers.”
As you may remember, the CFTC said in its statement in early September that it accused three DeFi platforms Opyn, ZeroEx (0x Protocol) and Deridex of offering illegal derivative trading to investors and launched an investigation against them.
At this point, the CFTC charged Opyn and Deridex with offering illegal leveraged commodity trading using cryptocurrencies, failing to register as a futures commission investor, and violating consumer protections established in the Bank Secrecy Act.