Ripple: 2024’s Decentralized Finance Compliance Breakthrough

Ripple recently highlighted in an insights report that compliance could be the biggest breakthrough for decentralized finance (DeFi) in 2024. Ripple and TRM Labs recently co-hosted a public-private roundtable with an exceptional mix of regulators and industry representatives at the Elevandi Insights Forum as part of the Singapore Fintech Festival.

The committee said better data sharing among regulators, a common definition, and smart contracts that automatically enforce compliance might benefit decentralized finance. They also concurred that the global reach of decentralized finance opens the door to potential regulatory arbitrage. They also emphasized the significance of “compliance by design.”

Many predict 2024 will be a breakout year for decentralized finance, partially due to the ongoing tokenization of real assets and mainstream blockchain/crypto adoption. Ripple noted major regulators like IOSCO and MAS have already started preliminary decentralized finance discussions.

Jurisdictions lacking cryptocurrency regulatory frameworks, such as the United States, are making progress, as evidenced by the Commodity Futures Trading Commission’s (CFTC) recent Decentralized Finance report.

Ripple President Monica Long cited this auspicious start as one of the reasons why pioneering compliance for decentralized finance could end up being the biggest breakthrough in 2024. It could help extend blockchain applications in finance.

During the past week, the AMM amendment, which adds automated market maker (AMM) capabilities to the XRP Ledger, achieved a majority consensus. This marks a major decentralized finance milestone for the Layer 1 platform.

Ripple: Surfing The 2024 Decentralized Finance Tidal Shift

Many experts think 2024 could be an important year for decentralized finance, or DeFi. This is partly because more real-world assets are being turned into tokens on blockchains. It’s also because more people are using cryptocurrency and blockchain technology. Major government finance organizations like IOSCO and MAS have already started discussing how to deal with decentralized finance.

Even places without clear rules for cryptocurrency, like the United States, are making progress. The CFTC recently put out a report on decentralized finance. Ripple’s president said this good start is one reason why figuring out regulation for decentralized finance could be the biggest advance in 2024. It could expand how blockchain is used in finance.

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