Web Analytics
Sunday, November 3, 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

Related Articles

Stay Connected

3,477FansLike
4,500FollowersFollow
1,200FollowersFollow
3,912FollowersFollow
1,222SubscribersSubscribe

How to Start a Crypto Portfolio: A Beginner’s Guide

crypto portfolio, cryptocurrency investing, how to start a crypto portfolio, cryptocurrency tips, investing in crypto, crypto assets, risk management in crypto, diversify your portfolio, crypto market trends, blockchain technology, cryptocurrency education, digital assets, crypto trading strategies, altcoins, Bitcoin investment, Ethereum, NFT investments, DeFi, secure your crypto, portfolio tracking tools, market analysis, crypto news, investment strategies, cryptocurrency for beginners, long-term investing, short-term trading, crypto security, cryptocurrency regulations, wealth building, financial freedom
0
Starting a crypto portfolio can feel both exciting and overwhelming. With terms like "blockchain," "altcoins," and "wallet...

The Crypto Mixer Controversy: A Developer’s Tale – Tornado Cash

cryptocurrency, crypto mixer, Tornado Cash, Alexey Pertsev, Roman Shtorm, US Treasury Department, crypto regulation, privacy coins, blockchain technology, digital currency, financial crime, money laundering, cybercrime, hacking, Ronin bridge hack, legal battle, court case, witness anonymity, expert witness, crypto community, developer rights, privacy rights, digital privacy, surveillance capitalism, government overreach, future of crypto, technological innovation, legal precedent
0
A Clouded Future for Tornado Cash The murky world of cryptocurrency has once again cast a long shadow...

Latest Articles

Random