News & Events

Decentralized finance (DeFi) has exploded in popularity as an alternative venue for cryptocurrency trading, lending and other financial activities. However, recent enforcement actions by the Commodity Futures Trading Commission (CFTC) serve as a stern warning that DeFi protocols cannot ignore regulatory compliance obligations. DeFi operators must register appropriately and meet requirements under the Commodity Exchange Act (CEA) or risk penalties.

Introduction

The Federal Deposit Insurance Corp. (FDIC) has added crypto to its annual report on risks facing U.S. banks, highlighting the "novel and complex risks" that digital assets pose to the banking system. The report is part of the FDIC's Risk Review, which provides a comprehensive summary of key developments and risks in the U.S. banking system. The FDIC has stated that it is prepared to engage in "robust supervisory discussions" with the depository institutions it oversees. 

In the ever-evolving landscape of cryptocurrency, regulatory compliance plays a vital role in ensuring transparency and preventing illicit activities. One such regulation that has garnered significant attention is the Travel Rule.