DeFi Will Outlast Biometric ID Rules, Fold CEO Says

- Fold CEO predicts DeFi will withstand traditional regulatory measures. - Protecting open-source developers is key to preserving DeFi's core principles. On August 30, 2025, Cointelegraph reported that Fold CEO Will Reeves stated decentralized finance (DeFi) protocols will withstand efforts by governments and institutions to impose traditional financial controls. Reeves expressed particular concern about regulatory proposals like integrating biometric identity checks into smart contracts, arguing they are unlikely to succeed and comparing these attempts to earlier, failed efforts to control the spread of information online. On August 30, Cointelegraph also reported Reeves’ warning of a broader strategy from established financial institutions and governments, which he said are trying to slow innovation while positioning themselves to enter the cryptocurrency space. These entities leverage incentives within traditional financial systems to attract users away from holding cryptocurrencies directly, for example, by offering exchange-traded funds (ETFs) that can be used as loan collateral. However, Reeves views this trend as a temporary challenge and is confident that open financial networks will prevail in the long term. Reeves also highlighted that protecting open-source software developers from legal liability is the highest priority, as he believes this is key to ensuring the resilience of permissionless financial protocols. In addition, the Fold CEO stressed the importance of preventing centralization and regulatory overreach, describing them as risks to the fundamental principles of DeFi. Advocates for privacy and financial sovereignty share these concerns about regulations driven by legacy financial institutions. Critics argue that imposing Know Your Customer (KYC) requirements on DeFi protocols undermines their core values of permissionless access and decentralization. Furthermore, they caution that stricter regulations could increase financial surveillance risks, which could make DeFi indistinguishable from the traditional financial systems it was designed to disrupt. According to the latest data from CoinMarketCap, Bitcoin (BTC) was trading at $108,721.594 as of 20:12 UTC on August 30, 2025, with its 24-hour trading volume showing a 0.748% change.