The Financial Crimes Enforcement Network (FinCEN), a subordinate of the US Treasury Department, is among the institutions working on crypto regulation following President Joe Biden’s executive order on digital assets served at the beginning of the year.
While other institutions deal with the general crypto industry, FinCEN’s main agenda is DeFi platforms. FinCEN director Himamauli Das talked about the DeFi industry in his speech on Tuesday. Das noted the potential of DeFi platforms to “reduce the role of intermediaries or destroy the industry.”
The manager also explained that DeFi sites are at a critical point in the fight against money laundering. The elimination of middlemen in trading is the biggest argument of DeFi and crypto advocates. Crypto lovers believe that this eliminates counterparty risks. However, FinCEN does not favor decentralized solutions because of the status quo of intermediary institutions.
Source: https://blockworks.co/news/fincen-to-assess-defi-risk
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