Ripple’s president says compliance will be a major industry trend in 2024

Global payments network Ripple's adoption of decentralized finance (DeFi) is expected to be the industry's “big breakthrough” in 2024, according to its president, Monica Long.

In an interview with Cointelegraph, Long explained that the incentive cycles previously fueled by initial coin offerings (ICOs) and non-exploding tokens (NFTs) will be replaced by metrics with real-world utility.

“In 2024, crypto will break the false cycles of speculation that have characterized the boom and bust for the industry since the invention of Bitcoin. […] In the year A major breakthrough in 2024 is to pioneer decentralized finance.

DeFi represents a transition from traditional, centralized financial systems to peer-to-peer finance enabled by blockchain technology. The sector's market capitalization at the time of writing stands at $79.5 billion, according to data from CoinGecko. It is no coincidence that DeFi has attracted attention from regulators around the world due to its potential compatibility with existing financial regulations.

The US is taking steps to expand regulation of cryptocurrencies and DeFi. New rules approved by the Securities and Exchange Commission (SEC) that redefine the terms “dealer” and “government securities dealer” require additional market participants to register with the regulator.

“As an industry, our mindset is that compliance should be non-negotiable,” Long argues. Applying existing regulations, such as decentralized foreign exchange trading, to DeFi use cases remains a challenge, she said. “It's an environment ripe for innovation this year.”

In the year Statista projects that the average income per user in the Diffie market will reach $1,378 by 2024. Most of the revenue comes from decentralized exchanges (DEXs), which allow users to trade cryptocurrencies without a central authority. Uniswap, one of the most popular DEXs, generated nearly $10 million in fees for its liquidity providers over the past seven days.

Compliance has long been predicted to drive real utility and mass adoption, requiring integration with existing infrastructure and systems. “The way forward is a happy marriage. This is what we have always believed,” she argued.

“If you don't understand the roots and history of the problem, you can't change how society moves, manages, values ​​and stores,” she says.

Magazine: Legislators' fear and skepticism fuel proposed crypto regulations in the US.