The US Fed Plans to Regulate the DeFi Industry

Federal Reserve Chairman Jerome Powell believes the DeFi market is having a strong impact on the traditional financial system.

According to him, this industry is expanding and more investors are testing the possibilities of decentralized finance protocols. Therefore, it is necessary to establish control over DeFi projects.

The ecosystem has suffered heavy losses during the year along with other digital currencies. Many investors have been hurt as a result.

The “winter” that has come in the crypto sphere may cause a surge of panic in other markets. Therefore, central banks need to work together to develop a regulatory framework for DeFi protocols to ensure their transparency and the safety of investors.