What are the implications of regulating decentralized exchanges? Do you think it's possible to enforce regulations on them? Can DEXs remain decentralized enough to go above the law? Your input will be greatly appreciated.
When it is decentralized, how could it be regulated? I mean the whole point of being decentralized is the fact that it should not be at the control of anyone, and regulating means that it should be controlled by someone to check what is going on, and that shows us that if something is controlled it is not decentralized. This is why technically speaking it is impossible to regulate a decentralized exchange, if it is regulated that means it is not decentralized to begin with.
I do however think that SEC could still look into decentralized places, like let's say Binance smart chain is decentralized, pancakeswap in that is decentralized but that doesn't stop SEC to check into CZ and what he is doing with BSC, not that he can control it, but he will be still investigated anyway, because SEC doesn't know how decentralized finance works and they have never dealt with anything like that before so they go after the creators.