PANews reported on January 9 that the Digital Assets and Blockchain Technical Subcommittee of the Technical Advisory Committee of the U.S. Commodity Futures Trading Commission (CFTC) released a report entitled "DeFi". The report discusses that the benefits and risks of Decentralized Finance depend heavily on the design and characteristics of a particular system, and that a core problem with Decentralized Finance systems is the lack of clear accountability. In order to drop risks to investors, consumers, market integrity and financial stability, the report puts forward the following five recommendations, namely:

1. Resource Assessment, Data Collection and Mapping: Improve technical capabilities and understanding of Decentralized Finance to build ongoing data collection, monitoring, information sharing and regulatory partnerships.
2. Investigate existing regulatory coverage: Use mapping exercises to determine whether Decentralized Finance products and services fall within U.S. financial regulation; assess compliance; identify regulatory gaps and whether frameworks should be expanded to address risks; work with self-regulatory organizations; and evaluate regulation in other international jurisdictions.
3. Risk identification, assessment and prioritization: including risks from information asymmetry and conflicts of interest, operational, technical and security vulnerabilities, liquidity and maturity mismatches, excessive leverage, algorithm discrimination, Whipsaw trading, front-running trading and other types of market manipulation.
4. Identify and assess the scope of potential policy responses to risks, including disclosure, regulatory reporting, third-party audits, entry restrictions, regulatory oversight, governance oversight, conduct oversight, product stewardship, balance sheet oversight, activity restraints, structural oversight, and solution planning.
5. Promote greater engagement and collaboration with national and international standard-setters, regulators, and Decentralized Finance builders.