DeFi Regulations: Where US regulators should draw the line
The U.S Federal agency’s approach to the DeFi market has raised several concerns over the future of the industry: Experts weigh in on what’s the right approach. Decentralized finance (DeFi), one of the fastest growing ecosystems in the cryptocurrency market, has long been a dilemma for regulators, given the decentralized nature of the space. In 2022, United States regulators paid special focus to the nascent area with significant attention to ending the anonymous nature of the ecosystem.DeFi protocols allow users to trade, borrow and lend digital assets without having to go through an....
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The WEF’s policy toolkit for decentralized finance seeks to promote, fair, efficient and enforceable regulations for the emerging digital asset marketplace. With regulated decentralized finance (reg-DeFi) becoming a topic of discussion within and outside the crypto space, the World Economic Forum (WEF) has published a policy toolkit on DeFi.According to a release issued on Tuesday, the toolkit seeks to provide useful guidance for regulators and government policy-makers concerning DeFi regulations. The WEF reportedly partnered with the Blockchain and Digital Asset Project at the Wharton....
Regulators & Bitcoin. New York’s BitLicense was a particular hot topic for the weekend. Bruce Fenton told the audience at TNABC that current regulators aren’t our friends. Some of the specific regulations regarding New York’s BitLicense seem a bit excessive. Lawsky has said that the regulations are to weed out bad actors, but such measures can weed out even good actors. Fenton called Lawsky’s hearing and TV appearances a masquerade. Regulations haven’t really the community’s expectations. Although that may be the case the governors that elect the regulators are so citizens can call them....
Thomas Moser hinted that regulations might take time as the current regulations would wipe out the decentralized ecosystem like DeFi. Swiss National Bank (SNB) deputy head Thomas Muser talked to Cointelegraph editor Aaron Wood and discussed the ongoing trends in central bank digital currencies (CBDCs), stablecoins, and regulations, during the recently concluded European Blockchain Convention (EBC) 2022.Talking about the innovation and adoption of private stablecoins and plans of central banks regarding the CBDC launch, Moser said both could co-exist. He said that CBDC's function would be....
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has double down on his take about decentralized finances (DeFi) regulations. In a recent interview with the Wall Street Journal, Gensler referred to the term DeFi as a “misnomer” and spoke more broadly about his stand towards the sector. Since Gensler was confirmed by the U.S. […]
According to Bloomberg, decentralized finance (DeFi) projects operate through automated contracts and are usually helmed by collective entities rather than single individuals. This collaborative nature of governance has often posed challenges for regulators. However, leading financial institutions are now questioning the narrative surrounding DeFi. Related Reading: Decentralized Domination? 40% Of Crypto Platforms Buck The Centralized […]