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@0xairtx @KyleSamani The CFTC is unlikely to ever give safe harbor for unregulated prediction markets (similar to how perps are regulated today) so that feels like an untenable ask. The goal for HPC is getting prediction markets available in the US, regulated by the CFTC vs state by state.

@masonnystrom @KyleSamani If every protocol must become a CFTC-regulated venue, then what’s the point of DeFi? A cex with a block explorer is still a cex.

@KyleSamani Ah, ok, thanks for clarifying. I'm sorry to see you and Tushar at odds ☹️

@0xairtx @KyleSamani The reality is that successful protocols have continued development efforts by companies and therefore some level of regulation is inevitable. The goal should be impact over ideology.

@masonnystrom @KyleSamani It’s not ideology tho. If continued development by a company makes regulation of the protocol inevitable, why is Pantera even investing in decentralized protocols at all? Just skip that and move to fintech.

Most people arguing for decentralization are arguing for ideology over impact. There’s a reason people use a “CEX with a block explorer” over a decentralized protocol. Because decentralization isn’t the core value prop. Also there’s nuance in defi to sectors or protocols. Morpho provides a flexible infrastructure for non-custodial vaults. And so the regulated risk is pushed to the curators and not Morpho. But a decentralized prediction market still acts an exchange because they list the markets and therefore is hard to push that risk to another entity. Lastly, fintech and crypto are arguably converging.

@masonnystrom @KyleSamani People were literally flaming Lighter for running a separate order book for RH saying it fragments liquidity. Now it’s okay?

You’re just making my point, you’re arguing for an ideological version of defi that in practice users don’t care about because it impacts the user experience. Users don’t care if Lighter runs a separate order book. All that matters is if it’s a better product experience. If defi enables that then great, if it doesn’t it won’t win out against a more centralized solutions. That’s just the truth of it all. In some verticals defi is an advantage (over collateralized lending with Morpho) but it’s not an advantage is every financial use case.