In 2024, regulatory requirements threaten to centralize blockchain networks, undermining decentralization efforts.

Regulatory bodies like the Basel Committee for Banking Supervision view cryptoassets on permissionless blockchains as risks, potentially increasing bank capital charges for stablecoins on public blockchains.

The International Organization of Securities Commissions' recommendations assume a controlling party in decentralized finance, which could lead to re-centralization.

Regulations such as the EU Data Act require smart contracts to have central intermediaries, necessitating re-centralization.

The EU's Anti-Money Laundering Regulation aims to impose transaction limits on self-custodied personal digital wallets, favoring cash transactions over digital.

These regulatory trends favor the traditional finance system, cash, and Web2 companies over digital money, DeFi, and Web3.

Regulators are urged to promote the growth of blockchain networks as public digital infrastructure for the common good, rather than centralizing power in large tech companies and traditional finance.