Curve founder Michael Egorov said regulatory pressure from the Financial Action Task Force, or FATF, could end up changing how decentralized finance protocols are designed. According to The Block, Egorov said that pressure may push DeFi projects to remove privileged access, along with capabilities tied to upgrade risk and intervention over user funds. In his view, those changes could improve the security profile of DeFi while also making protocols more decentralized. The remarks frame regulation not only as a constraint, but as a force that could reduce administrative power inside DeFi systems. Egorov’s comments, as cited by The Block, focused on how external compliance pressure may lead protocols to strip out control points that can affect users and protocol governance.
According to The Block, Curve founder Michael Egorov said pressure from the Financial Action Task Force (FATF) on decentralized finance, or DeFi, could push protocols to remove privileged access, upgrade-related risk, and the ability to intervene in user funds.
Egorov said such changes could improve DeFi security and make the sector more decentralized.
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