ICBA backs DeFi policy recommendations

ICBA expressed support for the International Organization of Securities Commissions’ recommendations for establishing policies on decentralized finance.

Background: IOSCO last month issued the recommendations calling for more consistent regulatory frameworks and oversight across its member jurisdictions. IOSCO is the international body of securities regulators.

ICBA Comments: In a comment letter, ICBA said IOSCO’s recommendations will:

• Help member nations identify and manage key risks, ensure clear and comprehensive disclosures, enforce applicable laws and regulations, and foster cross-border cooperation.

• Provide nations with a solid foundation to address challenges presented by crypto-assets.

Previous Advocacy: In previous letters, ICBA said:

• IOSCO’s separate policy recommendations for digital assets markets—the first attempt to establish baseline crypto policies—are prudent steps to safeguard the financial system from crypto.

• Most crypto assets likely qualify as securities, so it supports the Securities and Exchange Commission’s efforts to apply securities laws and regulations to crypto entities.

Outlook: IOSCO is scheduled to publish its final recommendations by the end of the year.