30-3-2025 – Both houses of the United States Congress have struck down a contentious regulation that compelled decentralised finance (DeFi) platforms to disclose customer transactions to the Internal Revenue Service (IRS). The US Senate delivered a decisive 70-27 vote to scrap this outdated broker rule on March 4, with the House of Representatives echoing the sentiment a week later on March 11. While this repeal marks a victory for advocates of DeFi, the sector’s future remains precarious, teetering under the weight of potential overregulation that could stifle its founding ethos of accessibility, pseudonymity, and independence from traditional financial systems.
Shibtoshi, the visionary behind SilentSwap—a platform championing privacy in trading—has shed light on why major institutions remain wary of embracing DeFi. Speaking to Cointelegraph, he pinpointed a trio of hurdles: the murky waters of regulatory frameworks, the glaring exposure of onchain transactions, and the tangled web of legal accountability. For businesses guarding sensitive details—be it trading tactics, payroll records, or commercial contracts—the transparency inherent in DeFi’s blockchain foundations poses a significant risk. Yet, Shibtoshi remains optimistic, asserting that these challenges, though formidable, are not insurmountable. “The core issues—uncertain rules, privacy gaps, and tricky user interfaces—can be addressed,” he remarked. “With advances in privacy-focused technology, platforms like SilentSwap are paving the way for DeFi to meet corporate demands.”
The absence of cohesive regulations across global jurisdictions continues to cast a shadow over DeFi’s growth, Shibtoshi noted. Questions linger unanswered: Should DeFi tokens be classified as securities? If a decentralised autonomous organisation (DAO) falters, who bears the blame? “It’s all rather foggy still,” he told Cointelegraph, urging policymakers to craft sensible rules that nurture innovation while safeguarding DeFi’s hallmarks—self-custody, swift transactions, and affordability.
Meanwhile, crypto expert Artem Tolkachev has sounded a stark warning about the creeping influence of compliance demands. Writing on the subject, he argued that an overzealous focus on regulation risks eroding the very essence of decentralisation.
