Paradigm Urges CFTC to Embrace DeFi in Spot Crypto Trading Rules
Today, Paradigm submitted a comment letter to the Commodity Futures Trading Commission (CFTC) responding to its request for input on the listing of spot crypto assets on designated contract markets (DCMs). While the proposal focuses on allowing these assets to trade on centralized futures exchanges, our letter calls on the CFTC to ensure that any new rules also protect and enable trading over DeFi protocols.
The CFTC’s noble goal is to bring spot crypto trading into well-regulated environments that protect market integrity, prevent fraud, and foster innovation. We agree with that mission. But, as we explain in our letter, blockchain technology has already moved the market beyond the 19th-century DCM model. Today, much of the most…
