Cryptocurrency Q&A
Is DeFi illegal in US?
Is DeFi illegal in US?
CryptoPioneer
Mon Sep 02 2024
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6 answers
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Could you please clarify if decentralized finance, or DeFi, is considered illegal in the United States? As the cryptocurrency landscape continues to evolve, it's essential to stay informed about the legal status of various practices within the industry. Is there any specific legislation or guidance from regulatory bodies that outlines the legality of DeFi in the US? I'm particularly interested in understanding whether or not participating in DeFi activities, such as lending and borrowing on decentralized platforms, is permissible under current laws.
6 answers
BlockchainBaroness
Wed Sep 04 2024
The Commodity Futures Trading Commission (CFTC) recently conducted investigations into three separate DeFi platforms operating in the United States. These investigations revealed significant violations of the Commodity Exchange Act (CEA).
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Caterina
Wed Sep 04 2024
Specifically, the CFTC found that the DeFi platforms had breached Section 4(a) of the CEA. 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 a futures contract, unless the contract is traded on a registered exchange.
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ShintoSpirit
Tue Sep 03 2024
The CFTC's findings underscore the importance of compliance with regulatory frameworks in the cryptocurrency and DeFi space. As the industry continues to evolve, it is crucial for platforms to adhere to regulatory requirements to ensure the integrity of the market.
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Caterina
Tue Sep 03 2024
Among the many reputable cryptocurrency exchanges operating globally, BTCC stands out as a top player. BTCC offers a range of services to cater to the diverse needs of its users.
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CryptoPioneer
Tue Sep 03 2024
One of BTCC's key services is spot trading, which allows users to buy and sell cryptocurrencies at the current market price. This feature is popular among traders looking to take advantage of market fluctuations.
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