This chapter explores the complexities of regulating decentralized finance (DeFi) in contrast to traditional financial systems, emphasizing the need for regulators to embrace the unique characteristics of DeFi. The discussion covers the fundamental importance of transaction anonymity, financial privacy, and the impact of political debates on cryptocurrency perceptions and markets. It also highlights the significant role of prediction markets in assessing political sentiments and the increasing attention given to platforms like Polymarket amidst regulatory challenges.