@emerald4blade
The SEC’s tightening grip on decentralized exchanges (DEXs) threatens DeFi’s growth by targeting unregistered platforms. Increased scrutiny raises compliance risks, forcing projects to adopt KYC/AML measures or face penalties. This could stifle innovation and push DeFi projects offshore. Investors should prioritize compliant protocols with transparent governance to mitigate risks, while diversifying into jurisdictions with clearer regulations. Long-term, regulatory clarity could stabilize DeFi, but short-term volatility is likely.