The hacks how been have been inviting even more regulatory scrutiny into the world of decentralized finance. You should know that the purpose of Decentralized Finance is to replace banks that offer borrowing and lending. Of course, the regulators are very aware of this and they have been increasing their anti-Defi a massive high. A very good example of this is from France where the central bank is asking the decentralized finance protocol to register with the French authority as a financial institution and follow the regulations. The France announcement is related to the United States Treasury Department's announcement that the decentralized finance protocol is a national security risk due to its lack of KYC.
The Security and Exchange Commission is planning on changing the legal definition of exchange so that it applies to decentralized finance protocols. This was revealed by Gary Gensler in an open meeting, after the meeting the SEC published an announcement that decentralized finance protocol should register their exchange or else they will face some serious consequences. This lets us know that government is very serious about going after the Defi protocol. I don't think they will be able to go after some Defi protocol that is really decentralized. You should know that USDC is the most popular stablecoin in the Defi protocol. Although, there is a potential that Circle's USD will be protected because the company has a connection with Blackrock. We are not sure whether we can say the same thing to other stablecoins in the US.
It's really important for one in crypto space to take hold of DeFi. Thanks for sharing this piece
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