The U.S. regulator plans to consult on the impact of decentralized finance on financial crime.
The U.S. Securities and Exchange Commission (SEC) has announced plans to consult on the impact of decentralized finance (DeFi) on financial crime.
The consultation will be open to everyone, including the public, regulators, businesses and other interested parties. The SEC will publish key questions it intends to address as well as a list of resources that can help people answer them before the end of 2022 or early 2023.
The US regulator plans to consult on the impact of decentralized finance on financial crime.
FinCEN Looks Into DeFi Matters
The Commodity Futures Trading Commission (CFTC) has said it will publish a request for information (RFI) that seeks feedback from market participants, academics and other interested parties on how distributed ledger technology (DLT) might affect financial crime. The RFI is expected to be published this summer, according to an official release published May 30.
The US Treasury is taking steps to understand the impact of decentralized finance on financial crime. This consultation will be a key step in ensuring that any new regulations are designed with the goal of protecting consumers, investors and businesses alike.
Banks have known for years that some of their customers were laundering money but did not report it to authorities, according to latest news. The details were found in a trove of leaked documents from the Financial Crimes Enforcement Network (FinCEN), which is an agency of the US Department of Treasury.
“The FinCEN Files show that major banks are far more aware of suspicious financial behavior by their customers than they are letting on to regulators,” BuzzFeed News wrote.
Banks have known about this for years but haven’t done anything about it because they make money from laundering money. Banks don’t want regulations limiting the amount of money they can charge people because then people wouldn’t be able to afford banking services anymore. Banks also need to maintain an image of legitimacy and trustworthiness in order for customers and clients to continue using them as financial institutions for their own personal needs and desires, regardless of whether or not those needs actually coincide with what’s best for society at large or not.”
