#DeFi: The question of whether DeFi developers should be protected as open-source coders or held accountable as financial intermediaries is complex. Many argue that open-source developers should not be automatically liable for how third parties use their software, similar to how a car manufacturer is not responsible for a reckless driver. This fosters innovation.

However, the "financial" nature of DeFi introduces a layer of consumer risk and systemic stability. If a DeFi protocol fails due to a coding error or vulnerability, the losses can be significant. Therefore, some advocate for limited liability, especially when protocols are truly decentralized.

Regulation must evolve to distinguish between pure code and de facto "intermediation." It could focus on user interfaces (front-ends) that centralize access, or on the governance control of protocols, where entities or individuals can be identified. An "embedded regulation" approach where rules are integrated into the code itself is a future vision, but it requires innovative legal frameworks. The goal is to balance consumer protection and financial stability with the promotion of decentralized innovation.