“Crypto Mom” Says New SEC Plan Threatens DeFi
SEC’s new proposal could threaten DeFi protocols, said Commissioner Hester Peirce
SEC Commissioner Hester Peirce say that the vague language in the agency’s new proposal that aims to modernize the definition of a stock exchange could pose a threat to decentralized finance.
In a published statement on January 26SEC Chairman Gary Gensler argues it’s important to adjust the rules to keep up with the “increasingly electrified” systems that trade government securities:
In the decades since Congress enacted the definition of an exchange, there have been many changes in platforms — most notably, they are becoming increasingly electronic.
While the proposal makes no mention of cryptocurrencies, Peirce warns that it could be used to expand oversight of crypto trading platforms:
The proposal could reach more types of trading mechanisms, possibly including DeFi protocols.
Gensler has repeatedly stated that DeFi protocols tend to be centralized, urging the entrepreneurs behind these platforms to register with the SEC. He also believes that the vast majority of cryptocurrencies are unregistered securities.
In September, the Wall Street Journal reported that the SEC had begun investigating DeFi giant Uniswap.
Peirce, who is now a lone Republican in the agency following the recent departure of Elad Roisman, has been a staunch supporter of crypto for years and laments the lack of regulatory clarity in the US.