- dYdX’s CEO believes that the DeFi sector has the same evolution as the internet
- The executive thinks that today’s DeFi resembles the internet in the 1990s
- He also believes that DeFi users prefer apps instead using web explorers
The CEO of perpetual trading platform dYdX, Charles D’Haussy, believes that decentralized finance (DeFi) has the same evolution trajectory as the internet. The executive believes that the current version of DeFi resembles what the internet was in the 1990s, adding that the industry has a lot of room for growth. D’Haussy observed that DeFi users prefer interacting with DeFi platforms using apps instead of web browsers, indicating why almost all DeFi protocols have a mobile or desktop app.
Regulators Will Go through CeFi To Get to DeFi
Speaking to CoinDesk during the Hong Kong Fintech Week, the dYdX executive said that retail users will hasten the growth of the DeFi sector which is currently in a prolonged bear market.
According to D’Haussy, regulators will handle the DeFi space the same way they handled the internet. The executive predicted that regulators will focus on centralized entities serving as DeFi gateways instead of directly being involved with DeFi protocols.
D’Haussy believes that centralized finance (CeFi) has its place in contributing to DeFi adoption. According to the dYdX CEO, CeFi allows regulatory-conscious users to consume DeFi products within a regulatory environment.
The executive added that the market is yet to strike a mutual working relationship between CeFi and DeFi and figure out “the regulatory and technical challenges.”
DeFi-Specific Laws Are Yet To Come
D’Haussy’s observations come at a time when regulators like the United States Securities and Exchange Commission (SEC) continue probing crypto and web3 projects for violating securities laws.
Financial regulators in most jurisdictions don’t have clear guidelines for DeFi projects to follow to avoid violating financial laws. Some jurisdictions like Europe, however, are considering creating DeFi-specific regulations.
DeFi participants like the Enterprise Ethereum Alliance have unveiled guidelines to help regulators and users assess risks in DeFi protocols.
With D’Haussy’s remarks, it’s to be seen whether regulators will go after centralized DeFi gateways instead of the DeFi protocols themselves.
