DeFi continues to operate outside the rules as other regulations tighten — redefining finance. Europe is narrowing the gap on crypto asset taxes, U.S. lawmakers are reviewing market structures, and institutional investors are pushing DeFi into the compliance realm. As regulations become more stringent elsewhere, DeFi remains on the fringes, challenging traditional financial boundaries. The European Union is working to close the tax gap on digital assets, aiming for clearer taxation policies. Meanwhile, U.S. legislators are reevaluating market frameworks to better regulate the space. Institutional investors are increasingly advocating for DeFi to adhere to compliance standards, integrating it more deeply into the regulated financial ecosystem. This ongoing shift signifies a fundamental redefinition of finance, where DeFi's role continues to evolve amidst tightening regulations worldwide.