CTF Written Submission

Memo: Policy-Aware DeFi via the Hook Manager Framework—Regulatory Considerations for SEC

May 20, 2025
  • The Hook Manager Framework (HMF) enables adaptable, on-chain enforcement of compliance policies in DeFi protocols, ensuring regulatory alignment and systemic risk reduction.
  • Compliance logic is separated from the core protocol, allowing upgradability and flexible, jurisdiction-specific enforcement without disrupting core protocol code.
  • The framework supports on-chain auditability and transparency, creating real-time, immutable audit trails accessible to regulators and third-party monitors.

Last Reviewed or Updated: May 20, 2025