DeFi: Moving the Dialogue on Standards and Regulation Forward

The DeFi Report: Moving the Dialogue on Standards and Regulation Forward is a call to action for industry and agencies to engage on and commit to the development of right-size, globally harmonized standards and regulation of the DeFi ecosystem, and proposes how GDF can act as a stewardship platform to enable this.

The report outlines the key constituents of the DeFi ecosystem, summarizes the risks identified by regulatory and policy agencies, and proposes a two track approach to moving the industry-regulatory dialogue forward:

Track 1 – Short-Term Industry Transition:
Industry Standards

In the absence of regulation specific to DeFi, the industry must coordinate to establish governance and investor protection standards, as well as industry-led monitoring to demonstrate that it can operate to high standards of trust and predictability.

Track 2 – Medium to Long-Term:
A Co-Regulatory Model

Industry and agencies must collaborate in a co-regulatory model to carry out the process of risk identification across the ecosystem in a shared engagement platform. This will accelerate the development of right-size regulation that is harmonized at a global level.
In doing so, stakeholders have the opportunity to explore the design and operation of regulator nodes in a decentralized autonomous organization (DAO).

As a next step, GDF will convene the DeFi working group, Advisory Council, and the GDF Regulator Only Forum to further review and input to the development of Track 1 and 2 plans and objectives. GDF looks forward to further engaging with members and regulatory agencies on the development of these initiatives. If you would be interested in participating in these forums, email [email protected]