2024 DEFI COMPLIANCE AND SEC RULE CHALLENGES HIGHLIGHTED 

In a recent interview with Cointelegraph, Ripple’s president highlighted the potential for DeFi regulations to take center stage in 2024. Meanwhile, the United States Securities and Exchange Commission (SEC) has introduced new definitions for “dealer” and “government securities dealer,” targeting liquidity providers in DeFi. However, experts anticipate that stakeholders will contest the new rule in court.

The top 100 DeFi tokens experienced a bullish week, mirroring broader market gains, with the total value locked (TVL) in DeFi protocols surpassing $63 billion.

DeFi Compliance Emerges as Key Trend in 2024, According to Ripple

Monica Long, president of global payment network Ripple, predicts that compliance in decentralized finance (DeFi) will be the industry’s standout trend in 2024.

In her interview with Cointelegraph, Long emphasized the shift towards real-world utility at scale, driven by compliance, usability, and integration with existing systems, replacing previous hype cycles dominated by initial coin offerings and nonfungible tokens.

Experts Anticipate Legal Challenges to SEC’s New Dealer Rules

On Feb. 6, the U.S. SEC implemented new rules redefining “dealer” and “government securities dealer,” expanding registration requirements for more crypto market participants and mandating compliance with federal securities laws.

The SEC’s latest regulations have sparked criticism from the crypto community, DeFi ecosystem, and pro-crypto politicians. Concerns about clarity regarding the definition of crypto securities have persisted since the rules were initially proposed in 2022.

EigenLayer TVL Surges $1 Billion After Staking Cap RemovalEigenLayer, an Ethereum-based liquid restaking protocol, witnessed a remarkable $1 billion surge in total value locked (TVL) within just eight hours after temporarily removing its staking cap.

In an effort to stimulate organic demand, EigenLayer announced the temporary removal of its 200,000 Ether staking cap until Feb. 9, paving the way for a future where all staking caps could be permanently eliminated.

Block Earner Case Raises Legal Questions for DeFi in Australia

A recent ruling by an Australian federal court shed light on the nuanced regulatory implications surrounding crypto-yield products. The court distinguished between managed yield products, which require a financial services license, and “pass-through” DeFi products, which may not.

In a decision on the Block Earner case, the court imposed penalties over the offering of its “Earner” product in 2022, emphasizing the need for an Australian Financial Services License for products promising managed yield.

DeFi Market Overview

Data from Cointelegraph Markets Pro and TradingView reveals a bullish trend among DeFi’s top 100 tokens by market capitalization, with most showing gains on weekly charts. The TVL in DeFi protocols surged to $63.9 billion.

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