Coinbase CEO Urges DeFi Corporations to Fight Back Against CFTC Legal Action
Brian Armstrong, the CEO of Coinbase, has wasย known on decentralizedย financeย (DeFi) corporations targeted by the Commodity Futures Trading Commission (CFTC) to retaliate with countersuits. The CFTC recently imposed fines on plentyย of DeFi protocols, intensifying its enforcement efforts against corporations in the sector. Armstrong argues that the CFTC should not be taking legal action against these corporations because they are not financial service enterprises and the Commodity Exchange Act likely does not apply to them. He encourages protocolsย ofย DeFi to take their cases to court toย beย ableย to establish legal precedent, as the courts have shown a willingness to uphold the rule of law.
Three DeFi Corporations Fined by CFTC
The CFTC announced 3 simultaneous orders, filing and settling charges against DeFi corporations Opyn, ZeroEx, and Deridex. Opyn and Deridex were charged with improper registration, while all 3 were charged with illegally offering leveraged and margined retail commodity transactions in digital assets. Opyn was fined $250,000, ZeroEx $200,000, and Deridex $100,000.
Coinbase Highlights Lack of Regulatory Clarity
Armstrong argues that these enforcement actions are only driving the industry offshore. He previously suggested that Coinbase might move its operations outside the Unitedย States if thereย is no progress in explaining the regulatory landscape for digitalย currencies. As Coinbase itself faces legal action from the Securities and Exchange Commission (SEC), Armstrong understands firsthand the challenges of running a cryptocurrency business in an environment lacking regulatory clarity. In a recent blogย post, Coinbase highlighted the damage being done to the Unitedย States through a regulation-by-enforcement strategy.
Hot Take: Coinbase CEO Calls for DeFi Protocols to Challenge CFTC Legal Actions
Brian Armstrong, the CEO of Coinbase, has urged decentralizedย financeย (DeFi) protocols to fight back against the Commodity Futures Trading Commission (CFTC) legal actions. The CFTC recently imposed fines on plentyย of DeFi corporations, sparking concerns about regulatory overreach. Armstrong believes that these protocols should take their cases to court toย beย ableย to establish legal precedent. He argues that the CFTC should not be taking action against DeFi corporations, as they are not financial service enterprises and may not fall under the Commodity Exchange Act. By challenging these actions, protocolsย ofย DeFi can potentially shape the regulatory landscape for the industry.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
