FRBNY Blog: DeFi Addresses Crypto Risks, Tech, Legal Concerns Remain

Addressing the extent to which some of crypto could survive the current calamity, FRB NY staff in a blog post today argue that DeFi could resolve some of the risks apparent in recent crypto collapses if – and only if – technological and legal risks are addressed.  Features inherent to DeFi – e.g., self-custody, automated governance controls, and transparent distributed ledgers – address the asset custody, governance, and disclosure failures central to recent collapses.