DeFi Compliance Forecasted as 2024 Trend, As Market Sees $63 Billion in Total Value Locked
Summary:
This week in decentralized finance (DeFi), Ripple's president predicts compliance will be the industry trend by 2024, the SEC's new rules on "dealers" could face courtroom challenges, Ethereum-based protocol EigenLayer sees a $1 billion surge in TVL, and an Australian court makes a nuanced ruling on crypto-yield products. The top 100 DeFi tokens also show a weekly positive trend with the TVL in DeFi protocols hitting $63 billion.
Every Tuesday, Finance Redefined offers the latest news in decentralized finance (DeFi), providing detailed analyses of the past week's most consequential movements in the crypto-market. Ripple's president Monica Long expressed in a recent conversation with Cointelegraph that DeFi compliance could be a dominant industry trend by 2024. Meanwhile, The U.S. Securities and Exchange Commission (SEC) has established a new interpretation of "dealer" and "government securities dealer", aimed at liquidity providers in DeFi. Critics believe this new regulation will face legal opposition.
This week, the top 100 DeFi tokens showed a positive trend, in line with the overall market growth. Also, the total value locked (TVL) in DeFi protocols has hit $63 billion.
Ripple's president, Monica Long, predicts DeFi's major leap in 2024 would be compliance. In a chat with Cointelegraph, Long voiced her expectations that the earlier buzz created by initial coin offerings and non-fungible tokens will be replaced by tangible utility at a larger scale. Achieving tangible utility requires compliance and compatibility with already established systems, she added.
In another news, experts have anticipated that SEC's revised "dealer" rules might end up contested in court. On February 6, the U.S. SEC implemented new rules which redefine "dealer" and "government securities dealer." The rules, first put forward in 2022, necessitate more crypto market operators to register and comply with the federal securities laws. This development has faced criticism from the crypto community.
In a separate update, DeFi protocol based on Ethereum, EigenLayer, has seen a remarkable $1 billion surge in its TVL (total value locked) within eight hours, subsequent to a temporary withdrawal of its staking cap limit. EigenLayer, based on Feburary 5 announcement, aims to stimulate organic growth by temporarily lifting its staking cap till February 9, thereby setting the stage for permanently removing all staking caps in future.
In Australia, a federal court judgement on Block Earner hinted at a subtle line of difference regarding crypto-yield products. The court ruled that a financial services license is needed for guaranteed yield products; however, "pass-through" DeFi products might be exempted from such requirement.
To wrap it all up, Cointelegraph Markets Pro and TradingView data showed that top 100 DeFi tokens by their market worth enjoyed a largely positive week, helping the TVL in DeFi protocols reach $63.9 billion.
Join us next week for more insights, facts, and understanding of the dynamically evolving world of decentralized finance.
Published At
2/9/2024 10:24:00 PM
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