Kyla _ey, a Certified Cryptocurrency Forensic Investigator (CCFI), said that the existing regulatory framework in the U.S. and globally often fails to address the unique challenges posed by DeFi. DeFi enables users to participate in a variety of financial transactions, such as lending, lending, and swapping transactions. The DeFi activity of focus is operated through smart contracts, i.e., code that can be executed automatically without human intervention. The decentralized nature of DeFi presents regulatory challenges, with illegal activity in the DeFi space on the rise, but regulatory infrastructure struggling to keep up with the changing landscape.