Programmable Regulation is Essential for DeFi’s Legal Future

Opinion by: Raks Sondhi, chief operating officer of Freedx

Governing composable, borderless and programmable ecosystems with rules made for simple, static financial systems presents a fundamental challenge.

In the past year alone, decentralized finance (DeFi) platforms held over $60 billion worth of crypto assets locked in their protocols. Yet most jurisdictions still lack a clear definition of a decentralized autonomous organization (DAO). This confusion is slowing innovation and undermining the credibility of regulatory institutions.

Lawmakers still…