TradFi policies ‘inadequate’ for treating DeFi, claims EU Commission study
citing,
These two are interesting:
Secondly, a voluntary compliance framework would cover both protocols and legal entities. Here, “protocols and users freely choose to adhere to some policy requirements in order to obtain different forms of public support and guarantee such as a stamp of public approval,” the report reads.
and
The third is a public observatory based on public opinions and on-chain data. “Such an institution would deploy public investigations and issue opinions and warnings publicly about specific DeFi protocols, practices and public address activities,” according to the report.
However, anybody who thinks this means some hands-off approach best look at this:
The European Commission is gaining traction with studies on how to regulate DeFi, with a tender for a study on “embedded supervision” of Ethereum released earlier in October.
From the short description in the tender notice:
A pilot project to develop, deploy and test a technological solution for embedded supervision of decentralised finance (DeFi) activity. The project will seek to benefit from the open nature of transaction data on the Ethereum blockchain, which is the biggest settlement platform of DeFi protocols. Its main focus will be on automated supervisory data gathering directly from the blockchain to test the technological capabilities for supervisory monitoring of real-time DeFi activity.
So, oracles as monitors - DeMons?