[onebot]

I think despite what the sentiment is, there is real value in crypto/blockchain. I mean if the US Government turned the dollar into a digital currency, wouldn't the sentiment change? Wouldn't DeFi be better with regulation? All the benefits of cryptocurrency/smart contracts/DeFi are real. The problem is there is no regulation. Without regulations most people are going to optimize for self interest. That is really overshadowing the potential. It will eventually change for the better.

[bfung]

How is it Decentralized Finance when regulation is created by a central body? (Can’t have multiple orgs defining regulations, they’ll just come up with different rules!).

DAOs are actually centralized bodies… “pay up and join the rule making club”.

The benefits touted would be amazing, but implementation-wise, are not based in reality and doesn’t account for use cases in a non-closed system.

It’s not sentiment; study Byzantine generals problem, CAP/PACLEC theorem, and hashing. Realize that the coin cannot be removed from the chain and vice versa to have those distributed benefits. Then look at the trade-offs from things like power consumption, etc. it’s not worth it. Maybe when we’re fully green and everyone has way more electrify than they can consume.

[onebot]

Maybe I should have qualified my statement. Regulation needs to happen around these Centralized exchanges and lending platforms like Celsius. So they don't over leverage their positions. DeFi should be completely decentralized (not your keys, not your crypto), but we still see middleman everywhere trying to extract value. If you are gonna act like a bank and be in custody of tokens that belong to your customers, then some regulation should be in order.

[jayd16]

>Wouldn't DeFi be better with regulation?

Doesn't the "de" in DeFi imply the lack of a regulating body?

[nfin]

kind of, but also not really, or at least not the same amount or type of regulation.

DeFi is like many new things, it is it’s own new category (a car is not just a fast horse or the internet was not just a better fax machine).

For example: in DeFi you can hold your own money (not just an IOU, but the real private keys). So it would make sense that things should be regulated differently, as often there is no custodial risk. So this set of regulation probably should be applied differently. Just an example. Other regualtion might make sense (depending of you ask), but the question arises what to do if they are not enforcable (just regulate with illegal spying tools, or let do and warn the public and maybe even stop thinking the state should protect everybody… these are only questions, I do not imply/recommend anything with these questions)

[the_gipsy]

Regulation, the one thing crypto was meant to avoid.