Tuesday, June 25, 2024

The head of the SEC announced the need to regulate the DeFi sphere

According to Gary Gensler, the regulator will be able to control the activities of decentralized exchanges if they are equated to mutual funds.

The head of the US Securities and Exchange Commission (SEC), Gary Gensler, worried about new ways in which people enter the digital asset market and become crypto investors, Bloomberg reports .

In particular, Gensler became interested in the field of decentralized finance (DeFi) and peer-to-peer lending, in which the issuance and receipt of funds is carried out directly between “equal” individuals without using banks or other financial institutions as an intermediary.

According to the head of the SEC, if an organization offers a specific interest rate on a crypto asset, then such loans should be regulated by the Securities and Exchange Commission.

Gensler also noted that decentralized exchanges can be viewed as mutual funds, which will allow the SEC to regulate their activities.

DeFi is financial instruments in the form of services and applications built on the blockchain.

The main task of decentralized finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open source protocols.

On July 22, the head of the SEC said that cryptocurrencies, which are pegged to the value of traditional financial assets, are subject to securities laws.

According to Gary Gensler , not only stablecoins pegged to the exchange rate, but also tokenized shares that are traded by many crypto exchanges can be considered as securities.

Read More DeFi News: Future of Meme Tokens, New Hacks, and Institutional Interest

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