I fully agree. A more proactive approach is needed. In addition, the approach should be more comprehensive. Current initiatives mainly focus on risks related to money laundering, terrorist financing, and tax evasion. Investor protection has a high priority as well.
Other topics such as market integrity, market efficiency, and financial stability do not play a major role so far. If DeFi becomes mainstream - and at some point it will - these issues have to be addressed as well. It is better to deal with them all at once rather than piece by piece.
Self-regulation might be one possible solution. As it will be difficult to hold DeFi protocols accountable, it will face similar problems as the current regulations, however. I’m not saying that it is impossible, but certain changes would have to be made to the protocols.
An ‘opt-in’ approach might be an alternative. But also in this case, changes on a regulatory level would be necessary.