Binance CEO defends DeFi in the face of legal pressure

Although DeFi is under a lot of pressure from many sides inside and outside the crypto industry, Binance CEO Changpeng Zhao still shows strong belief in the development of the field.

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Binance CEO defends DeFi in the face of legal pressure

In the context that the entire DeFi industry is in a state of stalemate partly due to the impact of the general downturn in the market and mainly due to the event of giving up the crypto career of DeFi "godfather" Andre Cronje in April/ In 2022, recently DeFi suddenly made waves again due to the appearance of many legal factors surrounding the field.

Specifically, on October 20, it appeared that the Commodity Futures Trading Commission (CFTC) – the body that has just been tasked with overseeing the cryptocurrency market – released a draft of a new Bill. detrimental to DeFi developers, following a controversial proposal to purge DeFi from the US Securities and Exchange Commission (SEC) in early 2022.

Besides, FTX CEO Sam Bankman-Fried also participated in this regulatory "game" through a personal post about the crypto industry regulatory framework. However, Mr. Sam Bankman-Fried's view was strongly criticized by the public because he wanted to target DeFi management.

And until October 23, the richest person in the crypto world, Binance CEO Changpeng Zhao, has officially voiced this concern. Accordingly, Mr. Changpeng Zhao seems to have expressed support for DeFi with a brief message as follows:

“Binance is investing very heavily in the DeFi sector.

This is not investment advice.”

 

The reason is that considering the basic characteristics and purpose of DeFi's birth, the field is completely free, without permission by anyone anywhere, anytime can access and use the services. DeFi products and services without restriction of rights by any individual. Users are the ones who control and manage their own assets and all transactions are public. However, the way Mr. Sam Bankman-Fried wants to legalize crypto has many points that go against this philosophy.

On the other hand, in the past, the CEO of Binance and the CEO of FTX have "clashed" with each other many times. The most prominent is the "war of words" of both because of the issue of "rescuing the market". Even after that, the Binance CEO was said by the community to have "reminded" the FTX exchange about "fraudulent" acts in the transaction.

The Binance CEO's statement comes a few days after FTX CEO Sam Bankman-Fried published a post about a regulatory roadmap for crypto. It can be seen that through just a simple statement, Mr. Changpeng Zhao seems to be trying to affirm his strong opposition to his colleague on the other side of the front line.

However, what is interesting is that the community seems to be extremely responsive to Mr. Changpeng Zhao's "call" about DeFi and is self-identifying that DeFi will become a new trend in the near future. As evidenced in the past 24 hours, DeFi tokens have recorded relatively impressive and rapid growth, despite Bitcoin (BTC) still struggling to break through the $19,500 resistance.

Statistics on the growth of outstanding DeFi projects in the past 24 hours.  Source: CoinMarketCap

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Oct 24, 2022

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