The DeFi decentralized finance market is expanding rapidly. Therefore, it must be introduced into the legal field, says SEC Commissioner Hester Peirce. She is often called the "crypto mama" as she periodically advocates for the early legalization of the cryptocurrency industry.
The introduction of decentralized finance into the legal framework will create an environment in which DeFi projects can compete with the banking system. Hester Peirce made a statement earlier this week at a conference organized at the George Washington University.
In her opinion, the DeFi market has huge potential. It is necessary to give all willing investors access to the tools within this ecosystem. However, this cannot be done, since it is outside the legal framework.
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The DeFi market will be one of the elements of a new financial system that will replace the outdated Wall Street. In such a market, smart contracts will replace intermediaries, which will reduce transaction costs, the "crypto mama" emphasized.
The value of funds locked in the DeFi ecosystem has been declining over the past few years. According to DeFiPulse.com, the capitalization of such digital assets is now about $ 38 billion.