When vehicles don’t have drivers, the concept of driver liability no longer applies.
How does liability apply to AMMs and liquidity pools, and front ends that access already existing blockchain based smart contracts.
Who & what should be regulating?
DeFi is at an historical inflection point. The legal status of these alternative financial rails will be resolved for short/mid-term purposes in the next 2 to 3 years, maybe sooner.
At issue is the application of hundred year old legal models written to govern centralized financial markets and centralized asset issuers.
Where one has centralized marketplaces that control trading of stocks or derivatives, there’s logic to having laws to govern those marketplaces.
DeFi is at an historical inflection point. The legal status of these alternative financial rails will be resolved for short/mid-term purposes in the next 2 to 3 years, maybe sooner. A thread.
My own view, simple country lawyer-ish perhaps, is that peer-to-peer or counterparts-less financial rails should be removed from the realm of financial regulatory oversight and treated as software risk, appropriately governed by software-related guidelines. 9/