CFTC Cracks Down On DeFi: ‘Illegal Derivatives Trading’ Lands 3 Protocols In ...

CFTC Commissioner Dan M. Berkovitz has called for a crackdown on unregulated DeFi derivatives platforms. Commissioner Dan M. Berkovitz of the Commodity Futures Trading Commission (CFTC) believes DeFi derivatives platforms may contravene the Commodity Exchange Act (CEA).Speaking as part of a June 8 keynote address dubbed “Climate Change and Decentralized Finance: New Challenges for the CFTC,” Berkovitz notes that: “Not only do I think that unlicensed DeFi markets for derivative instruments are a bad idea, but I also do not see how they are legal under the CEA.”Berkovitz noted that the “CEA....

With the rise of derivatives trading, how do protocols ensure that retail investors are not going in blind? BTCWith an increase in the number of retail investors dabbling in derivatives trading and investors hopping into decentralized exchanges (DEXs) due to regulations in the United States and China, there has been a rise in users utilizing derivatives DEXs, with Bitcoin (BTC) whales moving into derivatives and an increase in buying interest in derivative contracts.This has created a surge in the daily trading volume for derivatives protocols, allowing them to briefly take over....

Bitcoin is tumbling lower after it was revealed that the U.S. Commodities and Futures Trading Commission (CFTC) is charging BitMEX. BitMEX is a leading crypto derivatives platform based in the Seychelles. The U.S. regulatory agency, which focuses on derivatives, was rumored to be investigating the company. In 2019, Bloomberg came out with a report suggesting […]

The U.S. Commodity Futures Trading Commission (CFTC) has ordered a “decentralized” prediction market platform to shut down non-compliant markets and pay a fine of $1.4 million. “Polymarket had been operating an illegal unregistered or non-designated facility for event-based binary options online trading contracts, known as ‘event markets,'” said the derivatives regulator. CFTC Takes First Crypto Enforcement Action of the Year The Commodity Futures Trading Commission (CFTC) has taken the first crypto enforcement action of the year in the U.S.....

The commissioner has said the CFTC’s enforcement actions in the crypto space have been “aggressive," and hinted that decentralized finance platforms were likely illegal under the Commodity Exchange Act. Dan Berkovitz, one of three commissioners currently serving at the United States Commodity Futures Trading Commission, will be joining the Securities and Exchange Commission as general counsel following his departure in October.In a Tuesday announcement, the Securities and Exchange Commission, or SEC, said Berkovitz would assume the role of general counsel starting on Nov. 1, two weeks....