Coinbase CEO champions DeFi, calls for court action to set legal precedent
Coinbase CEO Brian Armstrong has expressed his endorsement of decentralized finance (DeFi) protocols. In a recent social media post, Armstrong urged the DeFi protocols to consider legal proceedings in court to set a precedent, as the legal system has consistently demonstrated its dedication to upholding the rule of law. The current approach is mainly pushing a crucial industry toward overseas jurisdictions, he said.
According to his post on X (formerly Twitter), the United States Commodities and Futures Trading Commission (CFTC) should avoid taking enforcement actions against (DeFi) protocols, as they do not function as conventional financial service businesses, and it's questionable whether the Commodity Exchange Act is even applicable to them.
The CFTC should not be creating enforcement actions against decentralized (DeFi) protocols. These are not financial service businesses, and it’s highly unlikely the Commodity Exchange Act even applies to them.
My hope is these DeFi protocols take these cases to court to…
In the previous week, the U.S. CFTC took action against three DeFi companies for engaging in alleged unauthorized trading of cryptocurrency derivatives. According to the regulator, these platforms enabled the illicit trading of crypto derivatives without the necessary registration.
In addition to Brian Armstrong, certain legislators have also shown their backing for DeFi protocols. Republican Commissioner Summer Mersinger underscored the importance of the CFTC concentrating on establishing transparent regulations for DeFi, rather than swiftly resorting to enforcement measures. She voiced her apprehension that the commission appears to be leaning towards enforcement actions, whereas she believes that engaging with the
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