CFATC tech advisory panel to review decentralized finance

60
2
CFATC tech advisory panel to review decentralized finance

A tech advisory panel of the U.S. Commodity Futures Trading Commission will review decentralized finance as the agency seeks regulatory authority over cryptocurrencies.

Decentralization,' digital identity and unhosted wallets, will contribute to ongoing policy discussions in Washington, D.C. and beyond the beltway, CFTC Chairman Christy Goldsmith Romero said in a press release.

The CFTC Technology Advisory Committee meeting will take place on March 22.

Decentralized finance is an alternative to traditional finance that is created as an alternative to traditional finance. DeFi use cases have evolved over time, including saving, investing, and trading beyond traditional financial services.

The technology advisory committee will review 'indicators and issues' related to decentralization and 'exploits and continuing vulnerabilities in crypto markets', according to the CFTC.

The panel will consist of executives from various crypto firms as well as individuals from other companies. The meeting will be hosted by Metrika Founder and CEO Nikos Andrikogiannopoulos, Ari Redbord, the head of legal and government affairs at TRM Labs and Trail of Bits CEO Dan Guido and Fireblocks CEO Michael Shaulov.

The advisory panel will also consider a subcommittee on blockchain technology and cryptocurrency in what is deemed a move to help the CFTC have regulatory authority over the crypto industry, Cointelegraph reported.

Last month, CFTC's Global Markets Advisory Committee explored digital market assets and recommended the formation of subcommittees in the sector.

The current crypto environment is a failure of risk management, Pham said last year, adding that it was important to have the right prudential regulation or minimum financial resource requirements and minimum standards for risk management in place.

The CFTC is trying to gain more regulatory authority over the crypto industry. Crypto-assets are subject to the 'primary regulator' of the SEC.

She said the existing regulatory frameworks such as anti-trust laws'may prove too limited in scope' in terms of properly regulating the crypto market. Like Pham, she believes risk management controls are more effective solutions to prevent crypto-related crises.