It is very difficult to govern DeFi since, in a genuinely decentralized system, there should be no centralized actors to impose regulations. Since legislation has typically targeted centralized middlemen, this could make fighting illicit funding more difficult. However, a study that was published last week by Katja Gilman, senior lead for public policy at Polygon Labs, Michael Mosier, co-founder of the boutique law firm Arktouros, and Rebecca Rettig, chief legal and policy officer at Polygon Labs, suggests doing precisely that.
In this conversation, Rebecca and Michael talk about what motivated them to write the paper, the distinction between “onchain CeFi” and “genuine DeFi,” how focusing on high-risk wallets can help, how critical communications transmitters (CCTs) are another piece of the puzzle, and what their plans for the future are.
