The United States Commodities Futures Trading Commission (CFTC) announced on March 1 that it would hold a meeting of its Technology Advisory Committee on March 22 with the main discussion focusing on Decentralized Finance (DeFi).
— CFTC (@CFTC) March 1, 2023
It was reported that experts on cybersecurity, and more specifically crypto industry executives will also be invited for presentation and contribution to the subject matter.
CFTC commissioner Christy Goldsmith Romero remarked that the panel is saddled with the responsibility of reviewing past labels and present emerging issues around DeFi in a thoughtful and holistic manner.
According to her:
“A discussion about DeFi, including cyber vulnerabilities, indicators of decentralization, digital identity and unhosted wallets, will contribute to ongoing policy discussions in Washington, D.C. and beyond the beltway.”
Some of the invited executives from crypto companies include crypto custody platform Fireblocks, security company Trail of Bits, venture capital firm Terranet Ventures, Metrika, among others.
According to the CFTC update, there will also be some subcommittee on crypto and blockchain technology targeted at ensuring that CFTC acquires regulatory jurisdiction on cryptocurrency.
Recall that the CFTC Chairman Rostin Behnam earlier argued that the CFTC is the ideal agency with the power to regulate shortfalls and inconsistency in the crypto space.
Addressing Decentralized Finance (DeFi) Shortfalls
More than any other time in history, Decentralized Finance (DeFi) has become the centre of attraction and attack with 47.7% losses recorded in 2022 due to massive attacks.
Unfortunately, more than $1.40 billion funds stolen from DeFi were carted away through Tornado Cash throughout last year.
It appears there is no attempt to stem the tide as several DeFi projects have been attacked. On Feb. 16, DeFi protocol Platypus was attacked by hackers, leading to the loss of $9.1 million.
While the regulatory measures that the CFTC will initiate are yet to be defined, it is suggested that more efforts are intensified accordingly.