07/24/2021 07:00 AM EDTNew financial services built on cryptocurrency are offering consumers the ability to borrow and trade billions of dollars without the oversight of bankers or their regulators. Washington is now scrambling to catch up, amid concerns of illegal activity and mounting consumer risks.
Watchdogs are warning that some DeFi activities are probably illegal under federal law and pose serious danger to consumers, who are putting their money into systems that have inherently less human oversight and accountability and are vulnerable to cyberattacks. “For the first time, you're starting to see DeFi protocols that are starting to set up procedures for borrowing and lending on a large scale,” Alabama Securities Commission Director Joseph Borg said. “It's between unknown participants without any intermediaries … So now the question is, who do we put this on?”
“The chronic systemic problem we have in our financial world is the fact that our traditional system, traditional finance, is concentrated, leveraged and too big to fail,” he said. The creators of some of the services are beginning to make contact with regulators. Marc Boiron, general counsel of the decentralized exchange builder dYdX, said in an email that "we have proactively communicated with the CFTC prior to the deployment of all of the protocols" and "have always carefully considered the laws applicable to dYdX." He said the first protocol dYdX developed required U.S. users to follow CFTC rules for retail commodity transactions.
Washington is scrambling to catch up? Bill number please.
Crypto is money laundering of blood money. Period. You all want clean money from your base of shills to blend with the filth
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