Ripple President Anticipates Major Compliance Breakthrough in DeFi Sector by 2024
Summary:
Ripple's president, Monica Long, predicts that compliance in decentralized finance (DeFi) will be 2024's biggest industry breakthrough, offering real-world utility at greater scale. She expects crypto to break free from speculative hype cycles and believes DeFi regulation is ripe for innovation this year. As the sector's market capitalization stands at $79.5 billion, new rules demand more market participants to register with regulators. Long asserts that compliance, utilities and integration are non-negotiable, paving the way for mass adoption and transformation in how society utilizes value.
The president of Ripple, a global payment network, Monica Long, anticipates that decentralized finance (DeFi) will achieve significant compliance, marking it as the industry's paramount breakthrough for 2024. During a discussion with Cointelegraph, she addressed that the past hype cycles stimulated by initial coin offerings (ICOs) and nonfungible tokens (NFTs) will pave the way for real-world utility on a large scale, necessitating compliance, usability, and alignment with existing systems. "The year 2024 will witness crypto surpassing the conjectural hype cycles that have characterized the rises and falls of the industry since Bitcoin's creation. The most prominent evolution in 2024 will be the instigation of compliance in decentralized finance," she stated.
DeFi symbolizes a transition from conventional, centralized financial systems to a peer-to-peer finance scheme empowered by blockchain technology. Presently, according to CoinGecko data, the sector's market capitalization is around $79.5 billion. It's no coincidence that DeFi has garnered global regulatory attention due to possible compliance consequences with current financial regulations. The U.S. is progressing to extend regulation over cryptocurrencies and DeFi. The newly implemented rules by the Securities and Exchange Commission (SEC) reinterpreting the definitions of "dealer" and "government securities dealer" necessitate additional market members to register with the regulatory authority. Monica Long, Ripple’s president, anticipates that DeFi regulation will generate “ample room for innovation this year.”
Long insists, as an industry, compliance is mandatory. However, applying existing regulations to new DeFi applications like decentralized trading remains challenging, hence the scope for innovation this year. Statista forecasts that by 2024, each user in the DeFi market will average a revenue of $1,378. The majority of this profit is likely to originate from decentralized exchanges (DEXs), platforms that facilitate users to trade cryptocurrencies sans any central authority. Uniswap, a popular DEX, has generated close to $10 million in fee income for its liquidity providers in the last week.
Long anticipates that compliance will stimulate actual utility and widespread acceptance, which calls for integration with pre-existing infrastructures and systems. She reasoned, "Our way forward is a harmonious collaboration, which is our firm belief. You cannot revolutionize the way society transfers, manages, tokenizes, and retains value without understanding the basis and history of the problem.
Published At
2/8/2024 10:30:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.