A former high -tech company lawyer has argued for sector -specific regulations for decentralized financing that use the strengths of the technology and at the same time tackles his weaknesses.
The importance of cooperation
Ran Hammer, a blockchain and crypto-oriented lawyer, argues for sector-specific laws for decentralized finances (Defi) that take into account the strengths and weaknesses of the underlying technology. According to Hammer, the goal is not to impose strict regulations, but to achieve efficiency and fairness in trading platforms.
In contrast to centralized finance (CEFI), however, these goals can “be achieved on a technological level and built into various protocols”. Hammer, the company, marketing and communities lead at ORBS, says that cooperation between developers and supervisors is crucial for creating safe ports for protocols. Although this approach could work, Hammer believes that its success depends on the level of cooperation between the two parties.
“The challenge is that implementing this type of system entails a long process of education and cooperation and the political will has not been there in the past. I think the more Defi builds and settles as a real economic strength, the greater the chance that this will happen, “Hammer told Bitcoin.com News.
The ORBS Marketing Executive, however, acknowledges that the increasing number of incidents in which bad actors are involved in Defi platforms to relocate and cash in stolen digital assets creates conditions that justify the concerns of supervisors. Some crypto crime reports in 2024 showed that security incidents involving Defi platforms had consistently exceeded the number of centralized exchanges.
While major crypto exchange robbery in 2024 (DMM Crypto and Warzirx) suggests that bad actors improve their tactics against security measures that are used by these fairs, reports of hackers sponsored by the government use Defi-platforms to exchange or move stolen funds , continue to feed the concerns of the regulators.
The Trump effect
Hammer claims that the openness of decentralized financing makes it difficult for platforms to implement complement measures, such as those of traditional financial intermediaries. However, regulators can still take on this challenge, in particular with fully open protocols, by concentrating on Fiat-off disasters or intermediaries who bridge decentralized finances and traditional finances.
In the absence of regulations, the marketing implementation emphasized that Defi platforms should evaluate and limit their regulatory risks while pushing innovation forward. “
In the meantime, Hammer said that he is sharing the optimism of many crypto enthusiasts that the Trump administration will pursue policy that is beneficial for the digital assets industry. However, he warned that the actions of the administration will largely depend on a shift in the attitude of regulatory authorities.
“Bureaucracy is always complicated, especially when innovation and uncertainty are involved, but it certainly seems that the Trump administration tries to place the right people and policy. Even if the effects are not clear in 2025, I expect that we will see positive things on the road, “he said.