'DeFi derivatives markets are a bad idea': CFTC commissioner

Dan Berkovitz, the US Commodity Futures Trading Commission (CTFC) commissioner, spoke out against the derivatives markets in DeFi. The term DeFi is an acronym for decentralized finance, a collection of crypto-based services and products that reflect most of the offerings in traditional finance, albeit with far fewer intermediaries. “Not only do I think unlicensed DeFi derivatives markets are a bad idea, I don't understand how they are legal under the Commodity Exchange Act (CEA)," Berkovitz said in his keynote yesterday. said. CEA regulates the trading of commodity futures in the United States. El Salvador Passes 'Bitcoin Law' Giving BTC Legal Tender Status The CTFC commissioner has come down hard on what he sees as a lack of protection in the DeFi space compared to the broader US financial system, which he describes as "the most efficient and efficient markets". For capital formation and risk management around the world. Berkovitz added that one of the main reasons for the success of the US financial system is the strong legal protections investors get when they invest their money in US markets, and most importantly, when they do so through intermediaries. Berkovitz is just the opposite. Unlicensed DeFi Markets According to Berkovitz, there is a long list of issues that the current DeFi system has not adequately addressed. “There is no middleman to monitor the markets for fraud and manipulation, protect funds invested in money laundering, ensure counterparty performance, or rescue customers when processes fail,” he said. Berkovitz went on to say that DeFi is "a Hobbesian marketplace where everyone takes care of themselves." It refers to the work of the 17th century political thinker Thomas Hobbes, who saw the natural man as a human driven by selfishness and excessive competition. The only way to build a society around such a creature is to

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