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Some markets. All kinds of financial transactions are happening as we speak in various DeFi ecosystems on a permissionless basis - you don't need an account, just a wallet.

Before say "your wallet is your account", only sort of. You can have any number of wallets through any number of applications that support it, including rolling your own if you so chose. Certainly nothing like the KYC/AML required of, say, Robinhood.

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Examples?

Loans, derivatives, providing liquidity to AMMs, lots of other things going on.

Here's a list of the big ones on Ethereum:

https://dappradar.com/defi

We’re talking about the government here, it’s entirely reasonable to assume they’re going to start regulating this kind of thing by imposing rules on citizens.

How are they going to regulate defi?

The most likely thing is to add onerous reporting rules on US citizens since they can’t directly change any of these protocols. Or, declare that participating in DeFi without a license is illegal. Again, they can’t ban DeFi because it’s decentralized but they can certainly regulate you and I’s interaction with said systems.

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