Odaily Planet Daily News: The U.S. DeFi organization DeFi Education Fund (DEF) has suggested that the FCA adopt a functional “control” definition when formulating new regulations for digital assets, limiting regulatory responsibility to entities that have sole control over user funds or transactions, rather than those involved solely in the development or contribution to decentralized protocols. DEF emphasizes that regulation should focus on specific operational capabilities, such as initiating or stopping transactions, modifying protocol parameters, or excluding users; otherwise, software developers could be mistakenly classified as intermediaries. DEF also pointed out that it is inappropriate to apply prudential, reporting, and access requirements designed for centralized trading platforms to non-custodial automated protocols, and stated that decentralized protocols have advantages in transparency and combating illegal financial activities. This recommendation responds to the UK Financial Conduct Authority’s (FCA) consultation on how DeFi can be incorporated into its digital asset framework. DEF supports a control-based principle but emphasizes that it must be linked to actual operational authority. (CoinDesk)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BIS calls for globally coordinated stablecoin regulation: warns that Tether and Circle account for 85% of those showing “security-like characteristics”
The Bank for International Settlements (BIS) once again emphasized the importance of global stablecoin regulatory coordination, pointing out three major risks that stablecoins face at this stage, including regulatory challenges related to cross-border flows and issues with market concentration. BIS proposed a unified ledger framework and argued that central banks need to lead the development of digital currencies, which would pose challenges to existing stablecoin issuers such as Tether and Circle. Overall, in the future, stablecoins may face a more stringent regulatory framework.
ChainNewsAbmedia27m ago
Hong Kong SFC Approves New Framework for Trading Tokenized Investment Products
Hong Kong's SFC introduced a regulatory framework for trading tokenized investment products, enabling secondary market trading on licensed virtual asset platforms and enhancing access for retail investors.
GateNews1h ago
Central Bankers Warn Stablecoins Risk Accelerating Dollarization in Emerging Markets
Central bankers warn that stablecoins may accelerate dollarization in emerging markets and pose financial crime risks due to weak regulatory oversight. They urge for international coordination on stablecoin standards to balance innovation with financial stability.
GateNews1h ago
Charles Schwab Explores Prediction Markets Tied to Financial Events Amid Regulatory Scrutiny
Charles Schwab is considering introducing prediction markets for financial events amid growing Wall Street interest, while maintaining a focus on wealth management. Regulatory scrutiny is increasing, especially regarding sports and entertainment wagers, highlighted by recent legislation and concerns over insider trading and market manipulation.
GateNews4h ago
CLARITY Bill dispute de-escalates, JPMorgan report: the draft legislation is nearing completion
A JPMorgan report says legislative negotiations on the U.S. 《CLARITY Act》 are nearing the end, with contentious issues reduced to just 2 to 3 items. The main focus is on DeFi regulation and token classification. The bill aims to establish a regulatory framework for cryptocurrencies, covering issues such as stablecoin rules and the division of regulatory authority. Discussions about stablecoin yield are trending in a more optimistic direction, but the legislative timeline remains uncertain.
MarketWhisper4h ago
Moody’s: Stablecoins don’t pose a near-term threat to banks, but a $300 billion market cap reveals long-term risks
Moody’s Analytics said that stablecoins will not replace traditional bank deposits on a large scale in the near term, mainly because the United States’ payment infrastructure is mature and regulatory prohibitions limit their use. But as the stablecoin market capitalization rises, it could over the long term drive outflows from bank deposits and reduce banks’ ability to create credit. In addition, regulatory controversy around the CLARITY Act further increases uncertainty in the market.
MarketWhisper5h ago
