Decentralized Finance (DeFi) has become a hugely popular sector in the crypto world, with institutional investors investing heavily. The most successful protocols in this space are Uniswap, Maker, and Galaxy Fox. David Hirsch, the head of the Security and Exchange Commission’s (SEC) Crypto Assets and Cyber Unit, recently spoke out about the agency’s commitment to regulating DeFi. This article will look at how SEC regulation could affect these three DeFi protocols.
Uniswap is the largest decentralized exchange (DEX) in the crypto space. The SEC has proposed to regulate it like other centralized exchanges (CEXs). Securities laws would then apply to Uniswap and other DEXs. However, some experts have argued that this regulation would be difficult to implement, as Uniswap does not have the centralized management systems of a typical security exchange. Despite this, Uniswap has seen a 25% increase on the monthly chart, taking its price above the $5.20 level. There is a possibility of a further rally before the end of the year.
Maker is one of the oldest decentralized lending and borrowing platforms. MKR is the main utility token that governs the DeFi platform. However, it does not offer exchange services, so the proposed regulations would still affect Maker as a security exchange. Despite this, the Maker price has seen a 100% increase year to date. Interest in MKR decreased in November, causing a drop in price.
Galaxy Fox is a new addition to the DeFi space, combining play-to-earn mechanics with meme culture. It has recently raised over $100,000 in its beta crypto presale stage, and is currently trading at $0.00066 per token. Analysts have projected a 40x price surge, making it one of the best cryptos to invest in for maximum gains. SEC regulation would also affect Galaxy Fox, but it remains to be seen how much of an impact it will have.
It is clear that SEC regulation will affect the three booming DeFi protocols, but it is unclear to what extent. For now, investors should remain up to date with the latest news and make informed decisions before investing in any DeFi project.