Brian Armstrong, co-founder and head of crypto exchange Coinbase, has urged regulators to focus on centralized exchanges and not on the DeFi segment.
According to him:
“First, it is best to bring regulatory clarity to the environment of centralized industry participants (stablecoin issuers, exchanges and custodians), as this is where the greatest risk of harming users is seen.”
He believes that non-custodial wallet providers should be regulated like software developers, not like financial services. He explains his thesis by the fact that the former do not manage clients’ funds.
The creation of decentralized protocols should be equivalent to publishing open source code and, accordingly, protected by free speech rules.