Yes, but banks tend to have policies and procedures in place where large transactions require multiple parties to review and approve. When those procedures get broken, it's usually a result of fraud and appropriate legal actions can be taken.
While DeFi can implement these kind of policies and procedures, the rate at which seemingly undertested (untested?) code is being deployed and given unfettered access to a large values of tokens definitely falls under the "move fast and break things" category. Clearly the people involved don't grasp the level of risks they're taking or there would be a heck of a lot more emphasis on QA over deployment-to-the-blockchain.
And the government stepped in to save them. Not a fan of that but it's just what happened. Government will not step in to save crypto, at least not yet.
There's also the possibility that governments will actively ignore cryptos problems just to de-enforce crypto's utility.
> Banks behave nicely only when they're legally obliged to.
Not even then, as repeated illegal actions by banks (Wells-Fargo in particular has been getting caught a lot recently, but is hardly the only offender) demonstrate.
That’s a pretty glib and incorrect way of explaining crypto’s creation. Really, it was created because of the misguided belief that the fed breaks things, not “banks”. Basically, it was goldbug ideology on steroids.
If we’re comparing who “breaks” things more, crypto or banks, crypto will lose every single time. So far I’ve never had my bank account wiped out and the website replaced with a single page that says “penis”.
