Will Reeves, CEO of Fold, stated that decentralized finance (DeFi) protocols will endure despite government and corporate attempts to impose traditional financial regulations. He believes these efforts, like requiring identity checks or smart contract modifications, will backfire similar to attempts to control information flow on the internet. Reeves emphasized that such regulations aim to push users towards traditional investment vehicles and custody solutions that offer advantages over direct crypto holdings. He maintains that while regulations may temporarily hinder progress, ultimately, open financial networks will prevail. The core principles of DeFi—democratizing finance and maintaining permissionless access—are at risk if imposed regulations lead to centralization and increased oversight. Critics argue that such measures would make DeFi indistinguishable from the traditional financial system it seeks to replace, thereby undermining its fundamental purpose.

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