US Regulators Allegedly Forced DeFi Bans
The Essentials in Brief
The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are reported to have forced several DeFi (Decentralized Finance) founders to sign an agreement during President Biden’s term, prohibiting them from further involvement in the crypto industry. These incidents have not been publicly discussed so far, as the affected founders were required to sign a so-called Non-Disparagement Clause (NDC).
Forced Settlement and Threats
Joey Krug, a partner at Founders Fund, addressed these incidents during the ETH Denver conference. He reported that government agencies pressured DeFi founders into accepting a settlement with the SEC or CFTC. As part of this settlement, a clause was included that bans them from ever working in the crypto industry again.
Additionally, authorities allegedly threatened them with prison sentences, despite no evidence that any of the affected individuals had violated any laws. Particularly alarming is the fact that the SEC and CFTC are civil agencies and should have referred such cases to the US Department of Justice (DoJ).
Background: Operation ChokePoint 2.0
During the Biden administration, the so-called “Operation ChokePoint 2.0” became known. This initiative systematically excluded crypto companies from access to banking services. The US Congress is currently investigating the extent of these measures. However, it has not been publicly disclosed that founders were actively pushed out of the industry.
Call for Transparency
Krug urged the US Congress to summon the affected founders as witnesses and hold the responsible agency officials accountable. However, he expressed optimism that the SEC’s stance might change under the new administration. The Trump administration follows a more crypto-friendly policy and has already reversed some regulatory actions against companies such as Coinbase, Gemini, and Uniswap.
Our Assessment
If these allegations prove true, it would be a concerning signal for the crypto industry. The targeted removal of DeFi founders through regulatory pressure could hinder long-term innovation in the US. The ongoing congressional investigations will determine whether political consequences follow. The development of the new SEC policy remains to be seen.
You should read that too:
-
Wildlife Slots – The Best Wildlife-Themed Slots to PlayReading time: ~ 2 minutes
-
Steampunk Slots – The Best Slot Machines With a Steampunk Theme
Reading time: ~ 2 minutes
-
Gold Slots – Best Slot Machines With a Gold Theme
Reading time: ~ 2 minutes
-
High Volatility Slots
Reading time: ~ 2 minutes
-
Medium Volatility Slots
Reading time: ~ 2 minutes
- Fair 35x wagering on most promos
- Nearly 100 software providers
- User-friendly site design
- Binance Coin
- Bitcoin
- Cardano
- Dogecoin
- Ethereum
- Litecoin
- Polygon-Matic
- Ripple
- Solana
- Tether
- Tron
- USD Coin
- MetaMask
- Trust Wallet
- WalletConnect
| Wagering requirements | 35x bonus |
| 35x free spins winnings | |
| Minimum deposit | €20 |
| Maximum bet | €5 |
| Bonus validity | 30 days to claim |
| 14 days to wager / 7 days for free spins |
- There is no maximum bonus amount.
- 10 Free Spins per day over ten (10) days on Wanted Dead or a Wild or Book of Ra Deluxe.
- 13 instant, fee-free cryptos
- 9,800+ games tailored for crypto players
- Fast-loading, mobile-optimized platform
- Binance Coin
- Bitcoin
- Bitcoin Cash
- Cardano
- DAI Coin
- Dogecoin
- Ethereum
- Litecoin
- Ripple
- Solana
- Tether
- Tron
- USD Coin
| Wagering requirements | 40x bonus |
| 35x free spins winnings | |
| Minimum deposit | 0.0002 BTC |
| Maximum bet | 0.0002 BTC |
| Bonus validity | 7 days |
- Make sure to add our exclusive bonus code before you deposit to claim the offer.
- Slots count 100%, all other games 5%.
- Many wager-free bonus offers
- Over 11 cryptos, instant purchase option
- Award-winning and trusted brand
- Binance Coin
- Bitcoin
- Bitcoin Cash
- Cardano
- Dogecoin
- Ethereum
- Litecoin
- Ripple
- Solana
- Tether
- Tron
- USD Coin
- AstroPay
- Bank Transfer
- Flexepin
- Interac e-Transfer
- MiFinity
- MuchBetter
- Neosurf
- Skrill
- MetaMask
| Wagering requirements | None |
| Maximum cashback | No limit |
| Bonus validity | 14 days after receiving |
- Offer available for the first, second, or third crypto deposit.
- Cashback is calculated based on net crypto losses for the day of deposit.
- Cashback is credited daily for up to seven days after a qualifying deposit.
- Cashback is paid as real money with no wagering or upper cap.
