Can a DeFi Smart Contract Be Regulated? Two CFTC Commissioners Discuss

CFTC Commissioners Dan Berkovitz and Brian Quintenz discuss the difficulties of regulating crypto derivatives and DeFi. Show highlights:

their backgrounds
what the CFTC’s duties are regarding crypto
how the CFTC’s jurisdiction has evolved over the years
why Commissioner Quintenz believes SEC Commissioner Hester Peirce’s safe harbor proposal is “brilliant”
what relationship the CFTC and SEC have when making decisions on crypto assets
why the commissioners believe CFTC’s complaints regarding BitMEX are “well-founded”
why formal regulation for crypto derivatives is unlikely to be produced by the CFTC
why leveraged derivatives products are a “concern” to the CFTC
what makes regulating DeFi platforms so difficult
when it comes to DeFi, who is a natural entity for the CFTC to regulate, if any
whether the CFTC would ever go after DeFi “market participants,” who the CFTC also regulates
why smart contracts involving futures could be illegal
how the possibility that smart contracts could be illegal squares with the view that software development is a form of free speech
whether the CFTC could prosecute developers who write smart contracts
whether the CFTC needs to re-write its laws in light of DeFi innovation
why Commissioner Berkovitz thinks the DeFi “winners” will be protocols that focus on meeting regulatory requirements
why the CFTC approved Bitcoin futures in 2017 while the SEC has not yet approved a Bitcoin ETF
how a Bitcoin ETF could solve Bitcoin’s accounting issue, which currently gives companies no upside for adding BTC to its balance sheet