Publication Date

Summer 2021

Journal

New York University Journal of Law & Business

Abstract

The article explores the rapid growth and regulatory challenges of decentralized finance (DeFi), a blockchain-based sector that replaces traditional financial intermediaries with automated smart contracts. DeFi platforms, such as decentralized exchanges (DEXes) and lending protocols, offer financial services like trading, lending, and asset management without centralized control. While DeFi promises lower costs, greater accessibility, and financial inclusion, it also raises significant regulatory questions, particularly around compliance, liability, and oversight. The article highlights the tension between DeFi's decentralized nature and the need for legal frameworks to address risks such as fraud, market manipulation, and systemic instability.

Volume

17

Issue

3

First Page

686

Last Page

693

Publisher

NYU School of Law

Disciplines

Banking and Finance Law | Business Organizations Law | Entertainment, Arts, and Sports Law | Law | Science and Technology Law | Securities Law

Comments

Proceedings of the 2021 Spring Conference: The Impact of Blockchain on the Practice of Law Panel 1: The Growth & Regulatory Challenges of Decentralized Finance

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