Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

The breakdown is sponsored by nexus.com, chain aliasis, and FtX, and produced and distributed by CoinDes.

What's going on, guys? It is Friday, September 30th, and today we're discussing Fed Chair Jerome

Powell's comments on DFI. Before we get into that, however, if you are enjoying the breakdown,

please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation, come join us on the Breakers Discord. You can find a link in the show

notes or go to bit.ly slash breakdown pod. Also a disclosure, as always, in addition to them being a

sponsor of the show, I also work with FTX. All right, folks, well, we have been deep in the macro weeds, so I wanted to use today as a chance

to catch up on some of the crypto stories that have been happening in and around market

madness this week. And we start with J. Powell himself. Earlier this week, Fed Chair Jerome Powell

spoke at an event hosted by the French Central bank. He was on a panel discussion focused on

defy, digital assets, and systemic risk. A couple of key points from Powell's comments.

First, he argued that there is now a new context for defy, based on a global rise in interest

rates. This Powell suggested has exposed, quote, significant structural issues in the DFI ecosystem.

Expanding that out, he said, the monetary policy normalization that we're seeing all over the

world, all it did was reveal significant structural issues in the DFI systems and conflicts of

interest. All of those things have been revealed now that the tide has gone out.

As a quick aside, let's not let go by the monetary

policy normalization, as opposed to monetary tightening. This man is never not political.

Anyways, he also said that Defi has big issues around transparency, which was a real head scratcher

for the Twitterati, who pointed out that the entire hallmark of Defi is that everything happens on chain. In fact, many pointed out that it seemed like

Powell was confused between centralized finance crypto apps and decentralized finance

...