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# Regulation

Note:  Data in this section last updated March 13th, 2022

Risks such as these have made DeFi a target for regulators.  SEC Chief Gary Gensler labeled the space as the “wild west” and Elizabeth Warren recently called it “one of the shadiest parts of the crypto world”.

<figure><img src="https://1848510576-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAmJeQPCkTT9u0UZ8OI4U%2Fuploads%2FBvHf61x9xxGiGPRYYupB%2F49.webp?alt=media&amp;token=7b5410a3-0c38-4f3d-8b78-f6152d08c640" alt=""><figcaption></figcaption></figure>

Given the growing sentiment of the establishment, it’s all but certain that regulation is inevitable., but it’s not entirely clear how that would work or if it’s even possible.&#x20;

This could greatly impact centralized systems such as Coinbase or Tether, but it’s not clear how regulation would work for the broader ecosystem or if it’s even possible.&#x20;

After all, blockchains are decentralized systems -- that is, they’re run by thousands to tens of thousands of computers across the world – so there’s no central point authorities can use to enforce rules or shut them down.&#x20;

The perfect example of this is China’s “Bitcoin ban”, which sounded scary but had little effect on the space as most local traders simply switched to Uniswap, a decentralized exchanged, and continued business as usual.&#x20;