MakerDAO founder Rune Christensen appears to have modified his thoughts about the way forward for stablecoin regulation within the United States after the Biden administration’s current report on the subject.
In an interview with CoinDesk TV on Wednesday, the Denmark native mentioned that the report, which was launched by the President’s Working Group on Financial Markets final week, “turned me very optimistic on the outlook within the U.S.”
MakerDAO points the dai stablecoin.
Previously, Christensen was pessimistic about U.S. stablecoin regulation, warning that “we ought to be prepared for the worst,” in a live session on Reddit last month.
The largest worry decentralized finance (DeFi) tasks confronted was that regulators would miss out on the benefits of such an innovation and comply with China’s instance by cracking down, Christensen mentioned, however he famous that the report makes it clear that that’s not the case.
“The potential worth of decentralized expertise has been acknowledged … It’s not simply being lumped into the identical field with out actually caring about how that might squash innovation,” Christensen mentioned. “The report very clearly reveals a recognition that there’s a distinction between centralized and decentralized stablecoins.”
In regards to MakerDAO’s future within the U.S., Christensen additionally sounded optimistic, saying that the report “might lead to MakerDAO feeling extra comfy allocating extra collateral in direction of the U.S. financial system.”
MakerDAO took a serious step towards decentralizing itself in July after it reached a stage the place unbiased core items of contributors might take over a lot of the duties that had been beforehand dealt with by the Maker Foundation.
MakerDAO ranks No. 2 amongst DeFi tasks in whole worth locked (TVL), with $20 billion tied up in its smart contracts, in keeping with knowledge web site DeFi Llama. DAI, the challenge’s U.S. dollar-pegged stablecoin, ranks fourth amongst such tokens, with an $8.5 billion market capitalization, in keeping with CoinGecko.
DeFi is an umbrella time period for lending, buying and selling and different monetary companies carried out on public blockchains, with out conventional intermediaries equivalent to banks. Stablecoins, a sort of cryptocurrency designed to carry their worth towards a mainstream asset such because the U.S. greenback, play a important function in DeFi as a well-liked type of collateral and mortgage proceeds.