🇺🇸(17 April) US Congress An Overview of Decentralized Finance #Defi

💎 DeFi refers to financial services like lending, trading, and borrowing that operate on cryptocurrency and #smartcontracts, without relying on banks or other intermediaries
💎 Smart contracts are self-executing pieces of code that replace the role of financial institutions in processing transactions
💎 As of March 2026, around $98 billion is locked in DeFi protocols, though this remains far smaller than traditional financial markets
💎 Unlike traditional finance, DeFi has no credit scores, underwriting standards, or financial thresholds, relying instead on collateralization and technology
💎 DeFi is largely unregulated and permissionless, creating challenges around compliance and enforcement
💎 Key concerns include regulatory arbitrage, money laundering risks, and the buildup of financial risk in less-regulated sectors
💎 The #CLARITY Act, passed by the House in July 2025, focuses on crypto markets but largely excludes DeFi, leaving its regulatory future unclear
💎 As tokenization allows more traditional financial products to use DeFi infrastructure, the regulatory debate is expected to widen​​​​​​​​​​​​​​​​
Link 🔗 To Document: