DeFi
Regulation: Biden administration threatens the future of DeFi
2:39 p.m. ▪ 3 min read ▪ by Ariela R.
DeFi is at a critical crossroads. Recently, the US administration took regulatory action against it. Measures that could redefine the future of DeFi and financial self-management, according to some experts.
US administration ‘rushing’ to make DeFi illegal according to VanEck executive
Aggressive DeFi Regulation in the United States
American regulators have intensified their offensive against decentralized finance sector in April. These regulatory attacks have raised serious questions about the Biden administration’s intentions regarding DeFi.
On this subject, Matthew Sigel, expert at VanEck, did not mince his words:
“The government is rushing to make DeFi functionally illegal before the next election.”
These regulatory offensives have been marked by several controversial actions.
- First, the SEC issued a warning to Uniswap Foundation alleging that this DeFi platform was operating an unregistered exchange.
- Next, the IRS proposed significantly expanding the definition of broker-dealers, essentially encompassing unhosted wallets used for personal custody.
- Finally, the SEC provided a warning letter to ConsenSys regarding MetaMask, one of the most popular decentralized wallets. This strict regulatory approach directly targets tools that allow users to hold and control their own cryptocurrencies.
A cooling in the crypto sector
According to Matthew Sigelthese regulatory measures have largely contributed to a cooling of investor enthusiasm for digital assets in April. In an already uncertain macroeconomic context, regulatory tightening is destroying the confidence of traditional investors in the cryptocurrency sector.
Many experts are also concerned about the long-term consequences of this situation. regulatory war against DeFi and self-management. By making these innovations nearly illegal, the Biden administration could:
- hinder the adoption of cryptocurrencies,
- deprive him UNITED STATES a major competitive advantage in the race for financial innovation.
While the political debate rages on regulation cryptocurrencies, the Biden administration is taking an aggressive approach towards DeFi. By increasing restrictive measures, American regulators are sowing doubt and confusion within this booming industry.
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Ariela R.
My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.