DeFi’s Future Hinges on Developer-Regulator Collaboration, Argues Legal Expert
Decentralized finance (DeFi) success depends on collaboration between developers and regulators, argues blockchain lawyer Ran Hammer.
He advocates for sector-specific DeFi laws that consider the technology’s unique characteristics, aiming for efficient and fair trading platforms. Hammer, of Orbs, believes collaboration is crucial for creating safe harbors for protocols, though he acknowledges the challenge of achieving this due to past political reluctance.
Rising incidents of DeFi-related crypto crime, often exceeding those on centralized exchanges, fuel regulatory concerns. While DeFi’s open nature complicates compliance, regulators could focus on fiat off-ramps. Hammer suggests DeFi platforms proactively mitigate regulatory risks while innovating. He remains optimistic about the Trump administration’s potential positive impact on the crypto industry, contingent on changes in regulatory agency attitudes.
Clever Robot News Desk 11th February 2025
