Innovative Defi Regulation By Polygon Labs And FinCEN
Polygon Labs executives, along with former FinCEN director Michael Mosier, propose a comprehensive framework for regulating illicit activity in decentralized finance (defi) markets.
The document introduces three distinct categories for defi platforms: those controlled by centralized actors, genuine defi systems, and critical communication transmitters. The authors, including Polygon Labs CLO Rebecca Rettig and Senior Public Policy Lead Katja Gilman, emphasize the need for a nuanced approach to defi regulation, acknowledging the challenges posed by its decentralized nature.
The suggested classification involves assessing each platform on a case-by-case basis, with a focus on recognizing genuine defi as critical infrastructure under the oversight of the Treasury Department’s Office of Cybersecurity and Critical Infrastructure Protection. The proposal aims to initiate a constructive dialogue for further development in collaboration with both industry and government stakeholders.
Clever Robot News Desk 1st February 2024
