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Bitcoin faces identity crisis as DeFi growth challenged by security flaws and calls for bank-level standards.

Market News
02 Jun 2026
Coindesk
View Source
Neutral
pluang ai news

Bitcoin is undergoing an identity crisis, losing its appeal as both a store of value and speculative asset, while decentralized finance (DeFi) quietly grows despite ongoing security exploits. Solstice Labs CEO Ben Nadareski urges DeFi developers to adopt financial management responsibilities and implement bank-level safeguards like real-time proof of reserves and multi-signature time locks to regain institutional trust. He believes the future of DeFi lies in blending institutional participation with low fees and equal retail access, treating decentralized networks as financial utilities with greater transparency and capital efficiency than traditional finance.

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