DeFi investment poised to grow next year

Digital asset business operators expect investment on decentralised finance (DeFi) platforms to continue to see growth next year as the digital asset industry evolves along with blockchain technology, despite a likely tightening of rules by the Securities and Exchange Commission (SEC).

The SEC is conducting a hearing to collect public opinion on the rules barring digital asset fund managers from investing their customers' assets on DeFi platforms and digital asset advisers from recommending their customers invest on the platforms, claiming the platforms expose investors to high risks.

DeFi generally refers to digital assets and financial smart contracts, protocols and decentralised applications, most of which are built on an Ethereum contract. In simpler terms, it's a financial software built on a blockchain.

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