Given its minimal impact on the real economy, regulation of decentralised finance (DeFi) must be done “seriously and intelligently,” according to US Federal Reserve Chair Jerome Powell at a French central bank event on Tuesday. His statements seek to caution authorities who are eager to impose laws in the aftermath of previous scandals uncovered by the recent crypto meltdown, such as the collapse of the terraUSD (UST) algorithmic stablecoin, which employed multiple techniques to assist the coin retain its peg.
