The U.S. government says there’s a new threat to national security…
Decentralized Finance. That’s right, the U.S. Treasury just dropped a 42-page report talking all about DeFi and the risks associated with it.
Lucky for you, I did all the reading so you wouldn’t have to. Here are the top things the U.S. Treasury said:
- Criminals, ransomware attackers, scammers, etc. all use DeFi to launder stolen funds. *Cough N. Korea cough*
- DeFi is used to launder money because it isn’t regulated.
- DeFi services don’t follow anti-money laundering (AML) or countering the financing of terrorism (CFT) laws.
The Treasury suggests the U.S. government should look at strengthening these regulations for DeFi services. AKA a new wave of DeFi regulation could be coming soon…
So what? This is the first risk assessment ever done by the U.S. government on DeFi.
And although there aren’t any new policies going into effect right now, it’s a warning that it could happen soon.
Regulators have come after centralized exchanges, stablecoins, NFTs, staking services and now they have their eyes set on DeFi. The government hit crypto with a 4-punch combo and is winding up a haymaker next.
