Main navigation

SEC Chair Gary Gensler Claims DeFi Is Centralized

News
Thu, 08/19/2021 - 19:29
article image
Alex Dovbnya
The extremely crypto-savvy SEC boss can see right through DeFi’s decentralization lie
SEC Chair Gary Gensler Claims DeFi Is Centralized
Cover image via stock.adobe.com
Read U.TODAY on
Google News

On Thursday, U.S. Securities and Exchange Commission Gary Gensler told Fox Business host Maria Bartiromo that decentralized finance (DeFi) platforms have “a lot of centralization”:

The so-called decentralized finance platforms actually have a lot of centralization. There’s a group of entrepreneurs that are running these platforms. They should come in and to the extent work with us and get registered.    

Gensler also made similar comments in his interview with The Wall Street Journal that was published earlier today.

The top regulator described DeFi as “a misnomer” since many projects that fall under the umbrella term are only partially decentralized:

There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees 

Related
Crypto Exchange OKEx Appears in Canadian Regulator's Crosshairs

The SEC boss has once again stressed that the agency doesn’t discriminate when it comes to specific tech, but it’s not neutral on investor protection:   

We focus on investor protection. We are neutral about technology (Bitcoin and the other crypto tokens). It was honor to teach a bunch of this up at MIT before I took this job.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.