Cryptocurrency Q&A
Is DeFi illegal in the US?
Is DeFi illegal in the US?
DongdaemunTrendsetter
Sun Sep 01 2024
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5 answers
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Could you please clarify if decentralized finance, also known as DeFi, is considered illegal in the United States? There have been numerous discussions and debates surrounding the regulatory status of DeFi, and I'm curious to know if there's a definitive answer to this question. As a cryptocurrency and finance practitioner, I understand the complexities involved, but a concise and straightforward response would be greatly appreciated.
5 answers
Davide
Tue Sep 03 2024
Section 4(a) of the CEA is the primary regulation cited in these settlements. This section prohibits any individual or entity from offering or conducting business in the United States for the purpose of soliciting or accepting orders for futures contracts, unless the contract is traded on a designated contract market or swap execution facility.
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SolitudeSeeker
Tue Sep 03 2024
The CFTC's enforcement actions demonstrate its commitment to ensuring that DeFi platforms operating in the US comply with existing regulations. The agency's actions serve as a warning to other DeFi platforms to ensure that their activities do not violate the CEA.
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Maria
Tue Sep 03 2024
One of the prominent cryptocurrency exchanges in the industry, BTCC, offers a wide range of services to its customers. BTCC's services include spot trading, futures trading, and a cryptocurrency wallet, among others.
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Bianca
Tue Sep 03 2024
The Commodity Futures Trading Commission (CFTC) recently concluded its investigations into three separate settlements involving US-based decentralized finance (DeFi) platforms. The CFTC's findings were unanimous in all three cases, highlighting a common violation of the Commodity Exchange Act (CEA).
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CryptoVanguard
Tue Sep 03 2024
BTCC's spot trading platform allows users to buy and sell cryptocurrencies at the current market price. Its futures trading platform, on the other hand, enables users to speculate on the future price of cryptocurrencies and hedge against potential losses.
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