Brian Armstrong, CEO of US cryptocurrency corporation Coinbase, has declared that the Commodity Futures Trading Commission (CFTC) should not manage the decentralized finance (DeFi) marketplace.
He has also made it clear that Coinbase has no intentions to switch from being a centralized platform to a decentralized one.
Armstrong then took to X to point out that the CFTC follows the activities in the DeFi sector, while digital assets cannot be considered commodities.
Thus, any projects created in the DeFi ecosystem must win a legal battle to show that their transactions are not subjected to CFTC regulation.
In April, Bloomberg reported that the Securities and Exchange Commission (SEC) was interested in gaining authority over DeFi entities, pledging to issue licenses that abide by US securities and exchange regulations to firms dealing with digital assets.