In many ways, the question of whether decentralized finance (DeFi) should defy regulators is settled, said participants in closed-door roundtable discussions at Consensus 2023. DeFi, a $47.8 billion industry spread over a number of application-friendly blockchains, has found product-market fit and has proven to be resilient during the crypto market downturn. While the sector is still relatively immature, many stakeholders across DeFi think the best course for the industry is to work with and educate regulators and institutions on accepting DeFi as it exists.
The task at hand is to demonstrate why the design decisions of DeFi were made and what benefits they may bear for users and financial watchmen. It is important to note that anyone can publish code to a blockchain and anyone with sufficient technological knowledge can access that code, so some amount of unregulated, unsurveilled, and potentially illicit DeFi activity will always be possible. This is why all regulatory conversations must take place.
The Consensus @ Consensus Report provides an in-depth look at the conversations that took place at Consensus 2023. It is a valuable resource for understanding the current state of DeFi and the steps that need to be taken to ensure its growth and compliance with regulators.