Arthur Hayes Says DeFi Has Failed if It Depends on Regulatory Approval

BitMEX co-founder Arthur Hayes said decentralized finance (DeFi) has failed to achieve its original mission if its future depends on regulatory measures such as the Clarity Act, arguing that true decentralization should not require government approval.

Speaking on the New Era Finance podcast, Hayes said the industry's focus should remain on building an alternative financial system that can serve billions of people globally rather than seeking legislative support to drive adoption.

He also pushed back against the view that clearer regulations are necessary to attract institutional capital. According to Hayes, Wall Street firms and professional traders are primarily driven by profit and will continue to participate in crypto markets as long as they can meet compliance requirements.

Hayes concluded by saying that investors waiting for regulatory approval before entering the crypto market may be better suited to traditional stock investing, emphasizing that crypto's value lies in offering an alternative to the conventional financial system.

Source: New Era Finance Podcast