On March 22, the U.S. Commodity Futures Trading Commission (CFTC) Technical Advisory Committee (TAC) held its first meeting of the year, with experts in the cryptocurrency industry sharing key information about decentralized finance (DeFi) with regulators.

During the meeting, officials from the cryptocurrency industry briefed the committee on crucial issues affecting the DeFi market, including decentralization, cyber attacks, and digital identity.

CFTC Commissioner Christy Goldsmith Romero, who sponsors the committee, explained the purpose of the meeting, stating, “As regulators and legislators are currently making policy decisions related to DeFi, it is important to understand how DeFi works.”

At the meeting, Ari Redbord, head of legal and political affairs at blockchain analysis firm TRM Labs, provided an overview of DeFi and blockchain technology. Redbord emphasized the strengths of blockchain technology, such as transparency, immutability, and privacy, stating that “the technology allows authorities to balance the right to privacy with the need for security.”

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Nikos Andrikogiannopoulos, founder of analytics firm Metrika, also spoke about the benefits of decentralization and the challenges the industry faces. He emphasized the fact that “the benefits of DeFi far outweigh the problems, and the problems are self-solvable,” adding that “it is important not only to embrace decentralization but to steer it in the right direction.”

During the meeting, officials also discussed the substantial asset values that have flowed into DeFi over the past two years. According to DeFirama, the value of DeFi is worth $49.1 billion, with an increase of $15 billion since the beginning of 2021.

The meeting also addressed hacks and vulnerabilities in the marketplace. Michael Shaulov, founder of Fireblocks, and DanGuido, founder of Trail of Bits, spoke about the top 10 hacks in the cryptocurrency sector in 2022, which resulted in losses of over $2 billion, with 113 out of 167 hacks occurring in DeFi.

As a result of the meeting, the CFTC Technical Advisory Committee unanimously voted to establish the Digital Asset and Blockchain Technology Subcommittee, which will focus on DeFi’s need, problems, use cases, vulnerabilities, and proposals for legal and policy frameworks.

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This article was republished from azcoinnews.com