DeFi is up, but how will it respond to impending regulation?
The crypto market has been in a bit of a bear run for the past few weeks/months, but DeFi tokens are rebounding. Some of the standouts are $CRV.X $LDO.X $LINK.X $UNI.X


But what will happen once crypto exchanges get regulated?


Crypto definitely needs some regulation to protect investors, but if they start demanding that people be accredited investors in order to invest in crypto, that can exclude a large swath of people from sharing in this wealth creation vehicle. According to the SEC, this is what you need to qualify as an accredited investor:
  • Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
  • Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
and/or
  • Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
  • Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)
  • Any “family client” of a “family office” that qualifies as an accredited investor
  • For investments in a private fund, “knowledgeable employees” of the fund

It'll be interesting to see how this all unfolds, and whether or not the SEC decides if they want to allow the average joe who doesn't meet these requirements to invest in crypto in the future. For now, DeFi is up and it's up to you to decide whether or not you find it to be a smart investment or not.
Eric Messenger's avatar
It sure why every me fears regulation. We wouldn’t have crooks like Bina ce and Luna getting away with robbery if there were some watchdogs. At least minimize the chances. I welcome regulation; without it, mainstream adoption, therefore a real return on my investment, will never happen, IMO. I love crypto, but to go mainstream, they have a long way to go.
Sidni Standard's avatar
@wall_street_deebo agreed! This is exactly why regulation is good, BUT I do think they may have to adjust the requirements for who is considered an accredited investor. I think the people who want to become financially independent will always find a way to get there, but again I think it’s great to have less barriers to entry
Eric Messenger's avatar
@sidnistandard I don’t know what kind of Mumbai Jimbo got put into my comment; talk to text must have caught something on tv as I was falling asleep.

I meant that it’d be tough if they ever tried to make it for accredited investors only. That’s way too small of a population for crypto to ever go mainstream.
joseph's avatar
I literally think the only reason why you are seeing a increase is because people think we are going into a recession and they think the value of the dollar is sinking so they move assets to this particular market. No more no less.
Sidni Standard's avatar
@jdub 100%

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