A high-ranking pro-Bitcoin (BTC) official from the U.S. Securities and Exchange Commission (SEC) says regulating decentralized finance (DeFi) is “impractical.”
In a new speech at a Duke University Digital Assets Conference, Commissioner Hester Peirce says that the way DeFi is designed presents lawmakers with many challenges.
“DeFi admittedly presents challenges to us regulators who are used to regulating companies, which are easy to cajole, monitor, and sue. Regulating people who write code is more difficult from a practical and legal perspective, including because it would impinge on free speech and would raise fairness issues since open-source coders cannot exercise control over how their code is used.
Regulating individual DeFi users would be impractical. Requiring the front ends of DeFi protocols — essentially interfaces allowing