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The Breakdown With NLW Episode

DeFi Grows in Institutional and Regulatory Importance

SEC Chair Gary Gensler focused on DeFi in a recent interview.

The Breakdown With NLW Episode
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SEC Chair Gary Gensler focused on DeFi in a recent interview.

This episode is sponsored by NYDIG.

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First, on the Brief:

  • Banks and bitcoin
  • Coinbase’s cash reserves
  • Brian Quintenz’s CFTC departure

In the main discussion, NLW addresses decentralized finance’s (DeFi) place in regulations as crypto continues to be on the minds of policymakers. Contention across U.S. regulatory bodies remains as the Federal Reserve’s concern with stablecoins, the Treasury Dept. with the infrastructure bill and the Securities and Exchange Commission’s Gary Gensler attempting to create the broadest reach on crypto regulations his organization can manage.

In The Wall Street Journal’s recent interview with Gary Gensler, the SEC chair claimed a particular focus on DeFi. He stated that core software developers, promoters and sponsors would be centralizing factors, calling the term DeFi a “misnomer.”

How will DeFi’s future unfold as it becomes increasingly important for both investors and regulators?

See also: Galaxy Digital Launches DeFi Index Tracker Fund

“The Breakdown” is written, produced by and features NLW, with editing by Rob Mitchell and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “Only in Time” by Abloom. Image credit: Feodora Chiosea/iStock/Getty Images Plus, modified by CoinDesk.