Thread by @mrjasonchoi

Will regulations end up killing DeFi?

A thread 👇

1/ As someone not based in US, keeping track of the alphabet soup of regulators (SEC, CFTC, IRS, FinCEN) can be daunting.

That's because unlike China, there's no comprehensive, unifying stance issued by one entity.

insights.deribit.com/market-researc…

2/ Over the past 12-24 months, individuals within different regulatory bodies in the US have offered various comments and draft regulations on DeFi.

Following is my rough summary of notable comments.

3/ The unifying theme is nothing new to crypto OGs, as they were the same that regulators raised for Bitcoin:

Without middlemen & gatekeepers, there's no way to prevent money-laundering and illicit use cases!

In DeFi, those concerns may extend to market manipulation as well.

4/ Worryingly, the current proposed guidance from FATF and FinCEN challenge the fundamental value proposition of DeFi.

Imagine needing to hand over your personal data before you use Metamask...trade with Uniswap...or borrow with Compound...

5/ Paraphrasing @pythianism, regulations will be the single most important variable that affects just how big DeFi can get.

So what can we do to make sure DeFi scales, avoid having draconian regulations, but protect public interest?

6/ To answer this, crypto's star lawyer @jchervinsky breaks every key piece of crypto regulation in the US, and the exact things we can do *today* to protect DeFi.

A must listen for founders and investors:

Apple: apple.co/3y8GkhJ

Spotify: spoti.fi/2UGDeDi

If you enjoy threads and interviews like the above, please consider giving @theBlockcrunch a 5 star review on Apple Podcasts!

apple.co/3y8GkhJ