In this episode, Alex and Gus unravel the complexities of decentralized finance (DeFi) through a comprehensive discussion on Eric Hess's groundbreaking paper, "Bridging Policy and Practice: A Pragmatic Approach to Decentralized Finance, Risk, and Regulation." (Read it here).

Exploring the historical roots of financial regulation and its evolving dynamics, the hosts delve into DeFi's challenges and opportunities. They trace the transformative phases of crypto, from Bitcoin's inception to the rise of Ethereum, centralized exchange dominance, and the disruptive influence of stablecoins.

Special guest Eric Hess joins the conversation to elaborate on the concept of "Hybrid DeFi" and the need for a pragmatic approach that accommodates both decentralized ideals and regulatory compliance. The discussion covers the USA's crypto regulatory viewpoint, emphasizing the importance of collaboration and addressing Anti-Money Laundering (AML) concerns.

The hosts and Hess explore the optimistic trajectory of crypto's journey, envisioning a future where privacy-friendly adoption aligns with regulatory standards. As the episode concludes, Eric Hess encourages listeners to delve into his thought-provoking paper, sparking crucial discussions on decentralizing finance.

Join the podcast for an insightful exploration of the intricate relationship between DeFi, risk, and regulation, shedding light on the evolving landscape of decentralized finance.