• CFTC Chair Rostin Behnam says that decentralized exchanges and other aspects of the decentralized finance world can be regulated in the US.
• He states that even though it is “just code”, U.S customers should be offered protections regardless.
• Behnam believes that how an exchange is operated isn’t as important as who initially set it up and what products are being offered.

CFTC Chair Says DeFi Crypto Exchanges Can Be Regulated

Commodity Futures Trading Commission (CFTC) chair Rostin Behnam has said that decentralized exchanges (DEXs) and other aspects of the decentralized finance (DeFi) world can be regulated in the US, even though it is “just code”. He believes that who initially set up the code to offer products to customers should be taken into consideration rather than how an exchange is operated.

US Securities Law Already Covers Most Digital Assets

Behnam explained that US securities law already covers most digital assets, and legal precedent will act as a foundation for regulatory analysis on DeFi. He also noted that either the CFTC or Securities and Exchange Commission (SEC) will be tasked with regulating DeFi projects in the US.

Gary Gensler’s Stance On Bitcoin

In the past, SEC chair Gary Gensler has stated explicitly that Bitcoin is a commodity, but he has refused to go into detail on other digital assets. Similarly, Behnam refrained from going into detail on individual digital assets but said that crypto in general should be regulated like other financial assets.

Protecting U.S Customers

Behnam emphasized protecting U.S customers by ensuring they are offered proper protections regardless of whether or not it is “just code” involved in DeFi projects. He stated: “It’s really about what are U.S customers being offered and exposed to.”

Conclusion

In conclusion, CFTC chair Rostin Behnam believes DEXs and other aspects of DeFi can be regulated in the US by taking into account who initially set up a project along with what products are being offered to customers for protection purposes.