May 17, 2024
Latest Cryptocurrency News

Coinbase CEO Backs DeFi, Urges Legal Precedent

Coinbase CEO Brian Armstrong has voiced his support for decentralized finance (DeFi) protocols in a recent social media post. He encouraged these protocols to pursue legal proceedings in court to establish a precedent, emphasizing the importance of the legal system in upholding the rule of law. Armstrong expressed concerns that the current approach of regulatory authorities is driving the DeFi industry towards overseas jurisdictions.

In his post on X (formerly Twitter), Armstrong specifically mentioned the United States Commodities and Futures Trading Commission (CFTC), urging them to refrain from taking enforcement actions against DeFi protocols. He argued that these protocols operate differently from traditional financial service businesses, raising questions about the applicability of the Commodity Exchange Act to them.

Additionally, certain legislators, including Republican Commissioner Summer Mersinger, have shown their support for DeFi protocols. Mersinger stressed the need for the CFTC to focus on establishing transparent regulations for DeFi instead of quickly resorting to enforcement actions. She expressed concerns that the commission may be leaning towards enforcement measures when engaging with the public and setting clear guidelines should be the primary emphasis.

Recently, U.S. regulatory authorities have increased their scrutiny of cryptocurrency companies. Notably, the U.S. Securities and Exchange Commission (SEC) has initiated investigations into major players such as Coinbase and Binance.

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