The US Securities and Exchange Commission (SEC) has appointed Dan Berkovitz, the vocal critic of decentralized finance (DeFi), as general counsel. The agency said in a press release that the former CFTC commissioner is scheduled to assume office on Nov. 1.
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Berkovitz has been working as a commissioner of the CFTC since September 2018. He is known for his sceptic view on the DeFi market. In June this year, Berkovitz suggested that unlicensed DeFi markets (DeFi) might be illegal in the United States. According to him, DeFi markets for derivative instruments, which include futures contracts, may not be legal under the Commodity Exchange Act.
Particularly, Berkovitz claims DeFi platforms are not registered as DCMs or SEFs [swap execution facilities]. However, the CEA does not contain any exception from registration for digital currencies, blockchains, or smart contracts, he emphasized.
"Dan is a dedicated public servant and was instrumental in both informing and implementing the Dodd-Frank Act," said SEC Chair Gary Gensler.
Gensler believes that Berkovitz will be "invaluable" in work at the SEC. In August, the SEC chair warned that the decentralized architecture of many cryptocurrency projects will not save them from oversight. Essentially, Gensler addressed those who control the governance of a token and fees within a smart contract.
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