Two major financial regulators are considering potential regulatory “innovation exemptions” for DeFi. SEC and CFTC continue to work together to bring regulatory clarity on crypto. On Friday, September 5, the Securities and Exchange Commission and the Commodity Futures Trading Commission…Two major financial regulators are considering potential regulatory “innovation exemptions” for DeFi. SEC and CFTC continue to work together to bring regulatory clarity on crypto. On Friday, September 5, the Securities and Exchange Commission and the Commodity Futures Trading Commission…

SEC and CFTC push for regulatory clarity on DeFi, on-chain finance

Two major financial regulators are considering potential regulatory “innovation exemptions” for DeFi.

Summary
  • SEC and CFTC issued another joint statement to harmonize crypto regulation
  • According to the two agencies, DeFi may get a temporary exemption from some rules
  • Agencies also outlined the innovative potential of on-chain finance

SEC and CFTC continue to work together to bring regulatory clarity on crypto. On Friday, September 5, the Securities and Exchange Commission and the Commodity Futures Trading Commission regulators issued a joint statement about their efforts on regulatory harmonization.

https://twitter.com/SECGov/status/1963963901915144268

Citing rapid innovation in crypto, the statement noted that the agencies’ work has “never been more intertwined.” To advance regulatory harmonization, the SEC and CFTC also announced a roundtable on September 29 aimed at bringing innovative onchain technology back to the United States.

SEC and CFTC to consider DeFi regulatory exemptions

The agencies said they are prepared to consider “innovation exemptions” for DeFi. Such exemptions could permit peer-to-peer trading and other complex market operations under defined guardrails. They also referenced prior work to bring crypto perpetual contracts back onshore.

Among some of the topics in the latest statement were the potential advantages of on-chain finance. The agencies discussed expanding trading hours and noted that other markets, including crypto, already offer 24/7 trading.

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