Stablecoins First, Now DeFi Platforms

SEC is seriously chasing the crypto to turn it into the dust. This was kind of expected. No other nation is as aggressive about the crypto as USA is and that is something you would find clearly in recent events.

A lot of stablecoins were hit with the SEC chase. A lot of projects including Algorand has faced SEC wrath. Some of the regulations also hit the projects outside the USA.

However now the goalpost is shifting.Now the DeFi and the staking is likely to get hit. So there will be a time when all those interest based instrument in the crypto would get attention.

Conflict of Interest

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When we make use of the swap, exchanges and the DeFi, we are technically going against the govt and also there is a huge conflict of interest. And in short that would be a potential problem for the crypto too.

In that case you can see that there is going to be a huge chase. That chase would be from the variety of crypto platforms and the SEC. So we are going to watch this cat and mouse game.

Lot of things would be coming out of the graves. And we are going to be seeing things that would be leading to demise of variety of projects that look good on paper. So it's the conflict of interest causing downfall.

Downfall leads to Drama

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Have you seen the TV show named Startup. Where the drama was around people who just wanted to sell the pipedream to the investors and deliver nothing. So the same can be said about the DeFi which were VC backed.

So there are lot of interesting things that would come out when SEC knocks. Like that would mean friends selling each other out to avoid jail. Some of the rich people running away from the jail and legal actions.

Like this we can see a lot of changes in the market and the drama would be something we have to adjust with. Those things would be harder to digest as the market goes down. It happened since Luna and may happen again.

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I know it's too pessimistic to look at how the govt responds to the news. Some of the changes that we see out there in the DeFi and the crypto in general are kind of painful.

It's not easy to say that stablecoins are going to be coming back under SEC's watch but they are not reliable from what I feel especially among exchanges.

What do you think?

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