CFTC DeFi report: Unveiling more than just identity details – Ledger Insights

The U.S. Commodity Futures Trading Commission’s Technology Advisory Committee (TAC) has published a 79-page report on policy recommendations for decentralized finance (DeFi), covering a wide range of issues beyond identity. The report highlights the importance of protecting consumers, promoting market integrity, managing risk, expanding access to financial solutions, and encouraging innovation in the sector. It also introduces a model for measuring the degree of decentralization in DeFi protocols, focusing on both functional and technological dimensions. The report suggests that policymakers should consider expanding regulatory perimeters in order to capture actors at the network, protocol, and governance layers. It also recommends mapping the DeFi sector and monitoring counterparty exposures. Additionally, the report aims to ensure that DeFi lives up to its potential for expanding access to affordable financial services while avoiding the problems associated with centralization.