Republican

DeFi

Security

Coin

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/us-congress-addresses-defi-opportunities-and-risks/" data-wpel-link="internal">US Congress Addresses DeFi Opportunities and Risks</a><br></p>
<p style="text-align: justify">The US Congress held its first hearing on Decentralized Finance (DeFi). The meeting discussed the opportunities and dangers brought by DeFi, highlighting partisan views; Republicans defended DeFi’s innovative and economic freedom aspects, while Democrats focused on consumer protection, market integrity, and the risks of unregulated financial systems.</p> 
<h2 id="definition-and-growth-of-defi">Definition and Growth of DeFi</h2> 
<p style="text-align: justify">DeFi generally refers to peer-to-peer digital asset transactions through smart contracts on permissionless blockchain networks. However, the meeting emphasized that DeFi lacks a standard definition. The committee presented statistics indicating the rapid growth of the DeFi sector. DeFi’s market value is currently at 67 billion dollars, and the total locked value (TVL) is recorded at 89 billion dollars.</p> 
<h2 id="republicans-vs-democrats">Republicans vs. Democrats</h2> 
<p style="text-align: justify">Republicans described DeFi as an innovative sector that could provide more efficient transactions by eliminating non-profit intermediaries. “DeFi is essential for a vibrant financial sector in the US,” said Warren Davidson from Ohio. On the other hand, Democrats emphasized the importance of consumer protections and stated that DeFi is prone to fraud. Brad Sherman from California argued that DeFi is more complex than traditional finance and a space where bad actors defraud customers.</p> 
<h2 id="republican-witnesses-views">Republican Witnesses’ Views</h2> 
<p style="text-align: justify">Republicans, being the majority in Congress, selected four witnesses to speak before the committee. Democrats could choose only one witness. Brian Avello, Chief Legal Officer of Universal DeFi Holding Company, argued that DeFi should not be governed by existing financial regulations. Rebecca Rettig from <a href="https://en.coin-turk.com/august-market-decline-and-the-rise-of-matic-will-the-rise-continue/" data-wpel-link="internal">Polygon</a> Labs noted that DeFi should be redefined as critical infrastructure, suggesting the <a href="https://newslinker.co/what-is-cybersecurity/" target="_blank" rel="noopener" data-wpel-link="exclude">Cybersecurity</a> and Infrastructure Security Agency (CISA) as a potential regulator. Amanda Tuminelli from the DeFi Education Fund emphasized that DeFi should not be managed with uniform rules from traditional finance. Peter Van Valkenburgh from Coin Center advocated punishing fraud and contract breaches.</p> 
<h2 id="democratic-witness-s-views">Democratic Witness’s Views</h2> 
<p style="text-align: justify">Mark Allen Hays, senior policy analyst at Progressive nonprofit Americans for Financial Reform, argued that existing financial regulations should apply to DeFi. Hays highlighted DeFi’s ideological stance of avoiding regulation and stressed the importance of protecting market integrity and <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">investors</a>. Hays also mentioned that many fraudsters operate within DeFi protocols.</p> 
<p style="text-align: justify">The meeting was presented as an opportunity for Congress to learn how DeFi works; however, political views dominated rather than an open-minded discussion. While Republicans defended DeFi as an innovative sector, Democrats highlighted the risks posed by unregulated financial systems. The rapid growth of DeFi and its various risks indicate that more regulatory debates lie ahead. Users should consider both the economic freedoms and the risks that DeFi brings.</p> 
<p>The post <a href="https://en.coin-turk.com/us-congress-addresses-defi-opportunities-and-risks/" data-wpel-link="internal">US Congress Addresses DeFi Opportunities and Risks</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.</p>

US Congress Addresses DeFi Opportunities and Risks

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