Regulators Misunderstanding Crypto's Biggest Trading Innovation
Greg Schvey, CEO of DRW, a leading proprietary trading firm, believes that regulators are missing the point when it comes to crypto's biggest innovation. According to Schvey, regulators are focusing too much on the risks associated with decentralized finance (DeFi) and not enough on its potential benefits.
Schvey made these comments during an interview with CoinDesk. He noted that DeFi is a 'major trading innovation' that has 'changed the way people trade' but is being stifled by overly restrictive regulations.
Schvey's comments come as regulators around the world are increasing their scrutiny of the crypto space. The Securities and Exchange Commission (SEC) in the US, for example, has been cracking down on DeFi platforms that it believes are operating without proper oversight.