Recent charges filed against Mango Markets exploiter Avraham Eisenberg will have a positive impact on the decentralized finance (DeFi) space, according to credit ratings firm Moody’s.

In a Jan. 31 note to Moody’s Investor Service, EVP of decentralized finance Cristiano Ventricelli stated that enforcement actions filed by the two main US market regulators in January mean DeFi is moving toward a “safer and more welcoming environment”.

“The fact that both the SEC and CFTC took action against market manipulation by an alleged rogue trader is a positive credit to the industry as a whole.

Ventricelli claimed that these actions could “improve oversight of the DeFi industry,” which for the most part has been a difficult area to regulate due to a lack of clarity regarding jurisdiction over open source protocols.

On January 20, the United States Securities and Exchange Commission (SEC) charges filed against the alleged market manipulator, while the Commodity Futures Trading Commission (CFTC) charges filed against Eisenberg on January 9.

Ventricelli had made a similar comment on January 26, according to a tweet from Moody’s Twitter page, but went into more detail in the January 31 note.

A man has been charged with orchestrating an attack on the Mango Markets trading platform to steal $116 million from #crypto assets. Moody’s Cristiano Ventricelli comments on the US Securities and Exchange Commission move. More on digital finance: https://t.co/pGDxM9u42T@SECGov pic.twitter.com/HLFILPGQOR

— Moody’s Investor Service (@MoodysInvSvc) January 25, 2023

The report suggested that DeFi is “no longer a no man’s land,” in reference to Christine Lagarde, President of the European Central Bank’s speech to the European Parliament in June 2022, where she argued that Europe’s crypto-legislation, Markets in Crypto-Assets ( MiCA ), should be “broadened” to include a framework for decentralized finance.

Ventricelli suggested that this more secure environment could lead to wider adoption between institutional investors “such as banks”, as well as retail investors.

Related: DeFi Sees Exploits and Gets Out of Scam Drama in Last Week of 2022: Finance Redefined

CFTC presentation alleged that Eisenberg “engaged in a manipulative and deceptive scheme to artificially inflate the price of the swaps offered by Mango Markets.”

While the SEC’s head of crypto assets and cyber unit David Hirsch alleged in his filing that Eisenberg’s stock “left the platform in a deficit” when the security’s price returned to its pre-manipulation level.

Mango Labs, the company behind Mango Markets filed his own lawsuit against Eisenberg on January 25, demanding $47 million in damages plus interest for the alleged exploitation of the platform in October 2022.