The rapid growth in decentralized finance (DeFi) has also caused regulatory authorities to think about DeFi regulation. Three major execs from the crypto industry shared their opinions about DeFi regulation via Decrypt Daily podcast.
Podcast on DeFi
Three renowned personalities, including Jason Wu, Erick Pinos, and Zaki Manian, agreed on the point that regulation is very important for the growth of DeFi. The host of the podcast, Matthew Aaron, interviewed respective execs about regulatory challenges facing by decentralized finance.
Erick Pinos, Ecosystems Lead for the Americas for Ontology, believes that regulation on the part of the US Securities and Exchange Commission (SEC) is good for DeFi. He said:
“I don’t think that the SEC coming in will necessarily mean that the party’s over or that things will stop…Ultimately, I do think it’s going to be good for space because there is just a lot of scams happening now and it is getting egregious—the level of DeFi scams and pump and dumps that are occurring.”
Regulatory Clarity is Essential
Jason Wu says that to rise to the market cap worth trillions, regulatory clarity is essential for DeFi. Jason Wu is the founder of DeFiner, the decentralized finance network of savings, loans, and payments. Wu said:
“I think that regulation is good for the long-term development of DeFi, because you cannot circumvent or go around regulation…If you want this industry to grow from its current $10 billion to a trillion-dollar or $10 trillion industry, regulation is necessary.”
Zaki Manian, co-founder of crypto firm Iqlusion Inc, on the other hand, said that “for regulators, I think a lot of the stuff that happens before a project is live is really covered by the First Amendment. It’s talking about ideas, it’s writing code, it’s creative expression.”
“This puts regulators in a bit of a tough spot because they can go after [someone] and there can be civil action or criminal action for violating securities laws…But at the end of the day, it doesn’t put the genie back in the bottle,” Manian added.