Welcome to Finance Redefined, the weekly newsletter that brings you the latest insights in decentralized finance (DeFi). In an interview with Cointelegraph, Ripple’s president predicted that DeFi regulations could be implemented by 2024. Meanwhile, the United States Securities and Exchange Commission (SEC) has introduced new definitions for “dealer” and “government securities dealer,” targeting liquidity providers in DeFi. However, experts believe that the new rule will face legal challenges.
The top 100 DeFi tokens had a positive week, following the overall market trend, and the total value locked (TVL) in DeFi protocols surpassed $63 billion.
Ripple’s president expects DeFi compliance to be a major industry trend in 2024. According to Monica Long, compliance is necessary for real-world utility and integration with existing systems, replacing the previous hype cycles fueled by initial coin offerings and nonfungible tokens.
Experts predict that the SEC’s new dealer rules will face legal challenges. The rules, which require more crypto market participants to register and comply with federal securities laws, have received criticism from the crypto community and pro-crypto politicians. The lack of clarity on the definition of crypto securities has been a major concern.
EigenLayer’s TVL increased by $1 billion in just eight hours after temporarily removing its staking cap. The Ethereum-based liquid restaking protocol lifted its staking cap to attract organic demand to the network. This move could pave the way for the permanent removal of all staking caps.
A federal court in Australia made a nuanced distinction regarding crypto-yield products. While products promising a managed yield require a financial services license, “pass-through” DeFi products may not. Block Earner, which offered yield for loans denominated in various cryptocurrencies, was penalized for not obtaining an Australian Financial Services License.
The DeFi market had a bullish week, with the top 100 tokens trading mostly in the green on the weekly charts. The TVL in DeFi protocols reached $63.9 billion.
Thank you for reading our summary of this week’s significant DeFi developments. Join us next Friday for more updates, insights, and education in this rapidly evolving space.