- Congressional Hearings on Decentralized Finance
- Opinions of DeFi Opponents and Defenders
- Political Context and the Future of DeFi
US Congress held hearings on decentralized finance (DeFi), discussing potential strict rules for the industry. This sparked lively debates between crypto defenders and skeptics.
Congressional Hearings on Decentralized Finance
At the US House Finance Services Committee hearing titled “Decoding DeFi: Breaking Down the Future of Decentralized Finance,” DeFi proponents testified to protect the sector from stricter rules focused on anti-money laundering and introducing total surveillance on web3 users.
Opinions of DeFi Opponents and Defenders
Crypto skeptics like Representative Bill Foster and other Democratic Congress members claimed DeFi developers should be held liable for criminal uses of blockchain technology. Committee members highlighted the Treasury as the best agency to enforce stricter AML rules and crack down on blockchain code writers.
Political Context and the Future of DeFi
Since crypto’s inception, US policymakers have generally regarded the Web3 complex as a Wild West rife with fraud. Still, the conversation around DeFi has gained traction in Congress and with some of the biggest financial names, like BlackRock. Proponents suggested that political headwinds have shifted in favor of crypto. For example, Coinbase CLO Paul Grewal said US citizens would elect a pro-crypto Senate, regardless of who wins the presidential elections.
The future of DeFi remains uncertain as debates continue in Congress. Both defenders and skeptics of cryptocurrencies are actively voicing their views on regulation and its potential impact on the industry.
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