On January 8, 2024, the Digital Assets and Blockchain Technology Subcommittee (the Subcommittee) of the Commodity Futures Trading Commission's (CFTC) Technology Advisory Committee presented a 79-page report titled "Decentralized Finance" (DeFi) to the CFTC. The Subcommittee's work, which is sponsored by Commissioner Christy Goldsmith Romero, does not represent the views of the CFTC. Rather, it "provid[es] a framework for policymakers and industry in approaching the regulation of DeFi."
In this alert, we summarize the Subcommittee's conceptual approach to DeFi in its report, as well as its key findings and recommendations.
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