Shibtoshi, the founder of SilentSwap, identified several key concerns that deter institutions from adopting decentralized finance (DeFi) solutions, such as privacy issues, inconsistent compliance regulations, and questions regarding legal accountability. He emphasized that these problems are significant but solvable, highlighting innovations in privacy-preserving protocols that can align DeFi with enterprise needs. Regulatory uncertainty remains a major barrier, compounded by varying legal frameworks across jurisdictions, leaving critical issues like the classification of DeFi tokens and responsibility within DAOs ambiguous. Moreover, recent legislative efforts, such as the U.S. Congress's decision to repeal a mandatory reporting rule for DeFi protocols to the IRS, indicate a movement towards more sensible regulations. However, concerns about overregulation persist and threaten the fundamental benefits of DeFi. The potential for excessive compliance could lead to increased censorship and a shift of control from users to intermediaries. This situation reflects the ongoing struggle between ensuring regulatory compliance and maintaining the decentralized nature that DeFi was designed to embody.

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