As regulators tighten their grip, DeFi faces a fundamental shift. The space is being pushed toward a banking model—more transparency requirements, stricter oversight, and centralized control mechanisms replacing the original decentralized ethos. This consolidation of power flows directly to regulatory authorities like the SEC, which has pursued enforcement actions against virtually every major player in crypto. The outcome isn't regulatory clarity but rather heavier compliance burdens. Decentralization—the core premise of DeFi—becomes increasingly hollow as authority concentrates in regulatory hands.