Crypto advocates call for consistent regulation

Crypto advocates call for consistent regulation

Crypto advocates are still calling for clear rules to support the U.S. Web3 industry and seek a path forward through consistent engagement with regulators.

Last Thursday, an enforcement action by the U.S. Commodities Futures and Trading Commission against three DeFi protocols was the latest incident in an ongoing saga of legislative battles, rulings by district courts, and scuffles over rulemaking.

With the CFTC now ordering Opyn, 0x, and Deridex to discontinue activities that violate the Commodity Exchange Act and CFTC regulations, some of crypto's prominent advocates are still questioning whether the regulatory landscape is conducive for entrepreneurs looking to operate in the space.

In late August, a judge dismissed a suit alleging Uniswap Labs and others were liable for losses caused by scam tokens launched by third parties on the Uniswap decentralized exchange.

In addition, Coppel also highlighted the inconsistencies in the CFTC, with a proposal by Caroline Pham, one of the five commissioners, to create a pilot program that would allow for supervised experimentation in the digital asset space.

In a dissenting statement, she said, the CFTC did not show that the DeFi protocols in question misappropriated customers' funds or otherwise caused harm to their users.

In a year where markets have been impacted by numerous developments pertaining to crypto regulations, the CFTC action is seensawed in a new era.

Ashley Ebersole, General Counsel at 0x, paid a $200,000 fine because its Matcha aggregator offered access to leveraged assets. ''It is just a fact of life'', he said in a conversation with The Defiant this week.

The SEC has been working hard to regulate crypto, and Ebersole has worked for the SEC. s going to get and the more there's going to be a need to engage with regulatory requirements, he said.

Will Warren, the co-founder of 0x, pointed to the difficulties involved in regulating crypto.

Chris Perkins, a member of the Global Markets Advisory Committee of the CFTC, thinks that the orders highlight the need to interact with key decision makers in the United States. It's going to play an important role in the future, and the U.S. is going to be a part of it, he said.