Brian Armstrong, the CEO of Coinbase, has encouraged decentralized finance (DeFi) protocols to challenge regulatory crackdowns in court. His comments came after the Commodity Futures Trading Commission (CFTC) took action against three DeFi platforms for “offering illegal digital asset derivatives trading.”
Armstrong questioned the validity of the charges and suggested that DeFi protocols should not settle but instead challenge these cases in court to establish legal precedent. He argued that these protocols are not financial service businesses, and the regulatory actions could push the industry offshore.
The CFTC has been actively pursuing enforcement actions against DeFi platforms, signaling its commitment to enforcing regulations within the DeFi space, whether the products are offered in a centralized or decentralized manner. Armstrong’s comments highlight the ongoing tension between regulators and the growing DeFi industry.
