Synthetix Founder Predicts US Courts Will Resolve Crypto Regulation Disputes - Reasons Explained
According to Synthetix (SNX) founder Kain Warwick, decentralized finance (DeFi) projects face inevitable regulatory risks in the United States. Warwick believes avoiding US regulation is nearly impossible for DeFi platforms.
In July, Synthetix (SNX) founder Kain Warwick launched Infinex, a decentralized perpetual exchange utilizing Synthetix for liquidity. Warwick acknowledges the regulatory risks of his new project, arguing some U.S. regulators are overlooking the benefits of DeFi's transparent infrastructure.
"In my opinion, U.S. regulatory agencies have lost sight of their mandate, and it will be up to the courts to resolve this. The stance of regulators in the U.S. is completely contrary to their mandate," said Warwick. "DeFi is built on technology that enhances market transparency and efficiency. It's very new and should have the opportunity to prove itself in the market. It certainly has more potential than the current system of legacy code barely kept in check by complex rules and regulations."
According to Warwick, he built Infinex after noticing inefficiencies in the Synthetix ecosystem. "The best part is no one can stop me. The same goes for other protocols. Don't like Aave's UX? Go fix it, and if you're right, you can charge fees for solving the inefficiency. This is the power of DeFi - incumbents can be disrupted internally and externally. This is impossible in traditional finance, stifling innovation."
Sep 19, 2023