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ARTICLE · 19 APRIL 2022

State Investor Advisory Addresses DeFi Risks

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Decentralized finance, DeFi, has quickly grown in popularity and is beginning to gain the attention of regulators attempting to stay ahead of one of the latest investor crazes.

United StatesTechnology
Moorari K. Shah
Moorari K. Shah
A.J. Dhaliwal
A.J. Dhaliwal
Gabriel Khoury
Gabriel Khoury
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Decentralized finance, DeFi, has quickly grown in popularity and is beginning to gain the attention of regulators attempting to stay ahead of one of the latest investor crazes. Blockchain-based financial technology such as DeFi largely operate outside of the traditional finance ecosystem occupied by governmental agencies, intermediaries, central banks, brokerages, exchanges, and banks by utilizing cryptocurrencies. DeFi providers are offering lending, banking, and investing options that are decentralized and not dependent on financial markets or regulations. As a result, DeFi providers often operate illegally or lack the protections that govern traditional financial service providers.

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