Rune Christensen, co-founder of DeFi platform MakerDAO, has said that floating DAI is the only path to decentralization and regulatory compliance.
According to him, since September 11, 2001, financial regulation has leaned toward zero tolerance for instruments that authorities cannot control.
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He has added that recent events such as the collapses of Terra, Celsius and others have undermined confidence in digital currencies and DeFi.
According to Christensen:
"Physical retaliation against the cryptocurrency sector can occur without warning and without the possibility of recovery, even for innocent and law-abiding users."
According to him, this violates the basic assumptions underlying the risk-weighted asset assessment (RWA) for securing the DAI stablecoin and makes the "authoritarian threat" very serious.