SEC Chairman Gary Gensler hasn’t called for banning cryptocurrencies in the U.S., but the relationship between regulators and the “Wild West” of the crypto landscape has predominantly been antagonistic. However, as DeFi has matured, and proven its staying power, U.S. regulators' views seem to have matured as well.
In recent remarks, Gensler has called for striking a balance between preserving the innovations stemming from DeFi’s ascent and protecting investors against financial stability concerns.
Crypto markets must be conducive to productive speculation while ensuring stability and hedging opportunities. The more than $4.14 billion locked in DeFi derivativesand the parabolic rise of yield farming, among other factors, substantially demonstrates the demand for speculative products in crypto.