{"id":126071,"date":"2025-03-29T22:15:54","date_gmt":"2025-03-29T22:15:54","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=126071"},"modified":"2025-03-29T22:15:54","modified_gmt":"2025-03-29T22:15:54","slug":"why-institutions-are-hesitant-about-decentralized-finance-shibtoshi","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=126071","title":{"rendered":"Why institutions are hesitant about decentralized finance \u2014 Shibtoshi"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsShibtoshi, the founder of the SilentSwap privacy-preserving trading platform, outlined several concerns that make institutions hesitant to adopt decentralized finance (DeFi) solutions, including privacy, a lack of standardized compliance regulations, and legal accountability.<br \/>\nThe DeFi founder told Cointelegraph that the high transparency of onchain transactions presents a problem for companies that must conceal sensitive information, including trading strategies, payroll information, and business-to-business agreements. Shibtoshi said:<br \/>\n&#8220;The main concerns \u2014 regulatory uncertainty, privacy limitations, and complex user experience \u2014 are real, but solvable. Innovations in privacy-preserving protocols are making DeFi increasingly compatible with enterprise needs. Platforms like SilentSwap are a step in that direction.&#8221;<br \/>\nRegulatory uncertainty continues to be one of the biggest problems for DeFi and is compounded by a fragmented approach across legal jurisdictions, which prevents institutional adoption, Shibtoshi added.<br \/>\n&#8220;Are DeFi tokens securities? What happens if a decentralized autonomous organization (DAO) messes up \u2014 and who is responsible when it does? It is all still pretty unclear,&#8221; the SilentSwap founder told Cointelegraph.<br \/>\nShibtoshi urged common sense regulations that encourage innovation and preserve the value propositions of decentralized finance, including self-custody, speed, and cost-effective transactions.<br \/>\nThe total value locked across the DeFi ecosystem has not yet returned to peak levels witnessed in 2021 and 2022. Source: DeFiLlamaRelated: Specialized purpose DEXs poised for growth in 2025 \u2014 Curve founder<br \/>\nUS Congress overturns archaic DeFi rule, but DeFi still in danger<br \/>\nBoth chambers of the United States Congress recently voted to overturn the highly unpopular DeFi broker rule requiring decentralized finance protocols and platforms to report customer transactions to the Internal Revenue Service (IRS).<br \/>\nThe US Senate repealed the IRS broker rule in a 70 to 27 vote on March 4, followed by members of the US House of Representatives voting to repeal the IRS rule on March 11.<br \/>\nDespite the repeal of the archaic rule, overregulation may end up killing a sector that was born as a decentralized, more accessible, and pseudonymous alternative to traditional finance.<br \/>\nAccording to crypto entrepreneur and investor Artem Tolkachev, regulatory compliance is undermining decentralization in DeFi and destroying the value proposition of the nascent sector.<br \/>\nThe emphasis on regulatory compliance measures increases the potential for censorship and shifts control from the users to third-party intermediaries and large institutions, Tolkachev wrote.<br \/>\nMagazine: How Shibtoshi gambled 37 ETH and became a Shiba Inu billionaire<a href=\"https:\/\/cointelegraph.com\/news\/institutions-hesitant-decentralized-finance-shibtoshi?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsShibtoshi, the founder of the SilentSwap privacy-preserving trading platform, outlined several concerns that make institutions hesitant to adopt decentralized finance (DeFi) solutions, including privacy, a lack of standardized&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126071"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126071"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126071\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126071"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}