With all this defi hype, I don't see very many people questioning the legality of some of these functions. In most countries, lending is allowed because two willing participants agree to a written contract. A contract is essentially a group of people privatizing a set of laws that take precedent over public law. "Smart contracts" are not legal contracts. A legal contract must have actual print and a signature of all participants acknowledging the terms of the agreement. Just because you have software executing a code, that doesn't make it a legal contract.There's a real fundamental problem with stablecoins: any system that effectively allows decentralized peer-to-peer transmission of money is going to fail one or more anti-money-laundering laws. Stablecoins are fundamentally illegal operations under US law. With bitcoin, you can squish around legal definitions to call it a commodity instead of money because of it's volatile nature. But stable coins are being marketed as 1:1 equivalent to USD, which is money.
Submitted September 12, 2020 at 10:38PM
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