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 Commissioner Christy Goldsmith Romero said in a press release.
The CFTC Technology Advisory Committee meeting will take place on March 22.
Decentralized finance is a type of sector that was established as an alternative to traditional finance. DeFi uses cases have changed over time, such as saving, investing and trading beyond traditional financial services.
The Technology Advisory Committee will review 'indications and issues' related to decentralization and 'exploits and continuing vulnerabilities in crypto markets', according to the CFTC.
The panel will include senior managers from various crypto companies and CEOs. The meeting will take place at the headquarters of TRM Labs, the head of legal and government affairs, Ari Redbord, and Trail of Bits CEO Dan Guido and Fireblocks CEO Michael Shaulov.
The panel will also consider a subcommittee on blockchain technology and cryptocurrency in what Cointelegraph described as a move to help the CFTC have regulatory jurisdiction over the crypto industry.
The CFTC's Global Markets Advisory Committee discussed digital market assets last month and recommended the formation of subcommittees in the sector.
Pham said last year that the current crypto environment was a failure of risk management, 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. The SEC is the primary regulator of crypto assets.
She added that the current regulatory frameworks such as anti-trust laws'may prove too limited in scope' in terms of appropriate regulating the crypto market. As Pham said, risk management controls are more effective solutions to prevent crypto-related crises.