Coinbase CEO Urges DeFi Firms to Sue Regulators for Precedent
- Coinbase CEO is persistent in his advocacy for fair crypto regulation.
- The CEO cast doubt on whether CEA applies to DeFi.
- Armstrong hopes DeFi protocols will start litigating their CFTC cases in court.
Coinbase CEO Brian Armstrong has called out the Commodity Futures Trading Commission (CFTC), scolding the regulator for “creating” enforcement actions against decentralized finance (DeFi) protocols.
Armstrong’s remarks follow CFTC’s recent regulatory crackdown on three prominent DeFi entities in the U.S., Opyn, ZeroEx, and Deridex, all charged with offering illegal leveraged and margined retail commodity transactions in digital assets.
DeFi Protocols Shouldn’t Settle
In a Twitter (X) post addressed to his over one million followers, Armstrong noted that the CFTC should cease targeting DeFi protocols, as these firms don’t function as conventional financial service businesses.
Notably, the CEO affirmed that it’s questionable whether the Commodity Exchange Act (CEA) even applies to DeFi protocols, noting that enforcing the provision would only “push an important industry offshore.”
“My hope is these DeFi protocols take these cases to court to establish a precedent. The courts have proven to be very willing to uphold the rule of law,” Armstrong said.The CEO has been persistent in his advocacy for a clear and objective regulatory regime in the crypto industry. In a previous interview, he slammed the Securities and Exchange Commission (SEC) for its “regulatory ambiguity” and called for a change in leadership in the commission .
Is the CFTC Overreaching?
Armstrong is not the first to take a jab at the derivatives market watchdog over its recent enforcement conduct.
On September 7, Commissioner Summer K. Mersinger issued a dissenting statement on CFTC’s regulatory action against Opyn, ZeroEx, and Deridex.
The commissioner said that finding liabilities and imposing action on a novel technology decentralized in conception and operation (DeFi) was not previously the subject of a CFTC enforcement action.
“The Commission’s Orders in these cases give no indication that customer funds have been misappropriated or that any market participants have been victimized by the DeFi protocols on which the Commission has unleashed its enforcement powers,” Mersinger said.Read why Armstrong believes crypto will be a major policy matter ahead of the 2024 U.S. Election:
Coinbase CEO: Crypto to Take Center Stage in 2024 US Election
Read this article to find out what the Coinbase CEO thinks about Bitcoin Lightning:
Brian Armstrong on Bitcoin Lightning: Is Coinbase Late to the Game?
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CloneX NFTs Hit a Wall as Images Vanish From OpenSea
SUI Jumps 73% After Grayscale and Mastercard Boost
SUI gains 73% in a week, driven by a Grayscale Trust listing and a strategic partnership with Mastercard.SUI Skyrockets After Major Institutional MovesMastercard Partnership Fuels Adoption HopesWhat’s Next for SUI?
Whale Buys Back 8K ETH, Nets $159K in 10 Days
Whale repurchases 8,012 ETH at $1,779, repays debt, and earns $159K from ETH trading over 10 days.Whale Re-Enters ETH With $14M BuybackSmart Debt Management and Strategic TimingProfit Through Precision
Solana Price Eyes $162, Cardano Slides Again, While Unstaked Presale Goes Viral in April 2025
Explore a timely comparison of Cardano, Solana, and Unstaked ($UNSD) focusing on real-time utility, price levels, and presale potential. Find out what crypto to invest in for both short-term strategy and long-term value.Cardano Slides Back Into Multi-Year RangeSolana Faces Crucial Test Near Largest Supply ClusterUnstaked Is More Than Hype: A Real Use Case in a Meme-Driven MarketUtility, Timing, and the Case for $UNSD
Trending news
MoreCrypto prices
More
