Forbes - DeFi derailed 🚧

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	Good Thursday morning. This is Billy Bambrough, here with what's driving the day in crypto-land. 📧 Thank you for reading CryptoCodex! I’d love to hear your feedback, ideas and tips. Email me directly at billy@billybambrough.com.


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	Cryptocurrency prices are marching higher again this morning, climbing along with a number of meme stocks that surged higher at the beginning of last year. Dogecoin has rocketed almost 15%. Make of that what you will. Bitcoin is up almost 2%, topping $43,000, while ethereum has risen 3% over the last 24 hours. Ethereum's major rivals solana and cardano are leading the market higher, up 8% and 16% respectively. Don't miss Forbes writer Charles Bovaird's piece on what's next for cardano's ADA. Meanwhile, the backlash against apecoin, the cryptocurrency linked to the Bored Ape Yacht Club non-fungible token (NFT) collection, is growing. "Apecoin is rewarding Bored Ape insiders with billions of dollars," writes Quartz, while Platformer's Casey Newton thinks "there's something off about apecoin." Apecoin's up 15% on this time yesterday. Now read this: Bitcoin stealth rally camouflaged by a renewal of risk appetite

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High risk, high reward 💰


	WildFi: The International Organization of Securities Commissions (Iosco), a global umbrella organization for securities regulators, has warned the fast-growing decentralized finance (DeFi) space contains myriad hidden conflicts and risks, outlining more than a dozen "key risks" in a 43-page report. DeFi is a term used for blockchain-based software that facilitates lending, trading and other financial activities without the need for traditional banks or third parties. The technology is notoriously buggy and vulnerable to hacks and exploits. Last year, tech investor Mark Cuban had his money stolen from a DeFi project and called for the space to be regulated. Red flags: Iosco's list of concerns includes market manipulation, the front-running of trades, fraud and illicit activity—as well as many so-called decentralized projects being entirely centralized. "Most DeFi protocols rely on centralization in one or more areas, and there are protocols that have a hidden centralized authority and are decentralized in name only," the board of Iosco wrote in the report. Bubble trouble: Martin Moloney, Iosco's secretary-general, told the Financial Times the DeFi market resembles the dot-com bubble, said its explosive growth warranted "closer attention by regulators." Why it matters: Yesterday, U.S. and U.K. regulators called for increased international collaboration to help them oversee decentralized finance (DeFi) and the growing crypto sector, it was reported by Coindesk. "I think a lot of the progress that we make along this road will depend on really high levels of international collaboration if we’re going to unlock the potential of digital assets and services," U.S. Federal Reserve chair Jerome Powell said at the Bank for International Settlements (BIS) Innovation Summit. The U.K.'s Bank of England governor Andrew Bailey said regulators have to "quickly" get a handle on DeFi and the sector’s growth. Cause for concern: DeFi app Anchor Protocol is promising an interest rate of 20%, it was yesterday reported by Bloomberg, blowing out of the water anything offered by traditional finance. Achor's founder Do Kwon, who's the creator of the Terra blockchain told the newswire the high interest rate is a reflection of the current level of returns DeFi can offer investors. Last week, an anonymous crypto investor and developer told Fortune she lost over $225,000 in an attack on DeFi lending platforms Agave and Hundred Finance, which saw some $11 million stolen. Easy does it: Despite the DeFi market's huge growth over the last year, Wall Street giant Morgan Stanley has said it expects DeFi growth to now slow down due to regulatory hurdles and over-collateralization. Morgan Stanley also said he doesn't see much benefit from DeFi protocols. "Rather DeFi protocols often seem to us as a way to attract cash flow to enrich the protocol operators," the bank's analysts wrote in a report reported by Coindesk. "DeFi is hack-prone and at risk of financial crime given anonymity is a key feature." The bottom line: The attention of lawmakers and regulators is slowly turning to the world of DeFi. They probably won't like what they see and companies running these services are easier to crackdown on than bitcoin. Good to know: Honduras’ central bank has nixed rumors the country could adopt bitcoin as legal tender

U.S. Senate eyes El Salvador 👀



	U.S. senator James Risch introduced the "Accountability for Cryptocurrency in El Salvador (ACES) Act" Getty Images


	🗳️ The U.S. Senate will vote on a bill looking to mitigate risks to the U.S. financial system from El Salvador's controversial bitcoin experiment that's seen the country adopt bitcoin as legal tender, begin building up a national store of coins and plan a $1 billion bitcoin-backed bond to fund a new low tax city. ✍️ "As El Salvador has adopted bitcoin as legal tender, it’s important we understand and mitigate potential risks to the U.S. financial system,” senator James Risch (R-Idaho), who introduced the "Accountability for Cryptocurrency in El Salvador (ACES) Act" along with Bob Menendez (D-N.J.) and Bill Cassidy (R-La.) in February, said in a statement on Wednesday, adding that the legislation would require the State and Treasury Departments, among other federal agencies, to mitigate risks such as potential empowerment of China and organized criminal organizations. Coindesk has a full write-up. 🐦 "Never in my wildest dreams would I have thought that the U.S. government would be afraid of what we are doing here," El Salvador's president Nayib Bukele posted to Twitter after the bill's passage. This week, El Salvador was forced to delay its closely-watched bitcoin bond, blaming poor market conditions. ICYMI: Thailand yesterday banned crypto as means of payment

	Billy Bambrough
	Forbes Senior Contributor

I am a journalist with significant experience covering technology, finance, economics, and business. I write about how bitcoin, crypto and blockchain can change the world.

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Forbes - DeFi derailed 🚧

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