Real decentralized projects pose challenge to crypto regulation – bitcoin regulation news

[ad_1]

A U.S. Securities and Exchange Commission (SEC) commissioner said true decentralized projects pose a challenge to crypto regulation. Noting that “decentralized finance in itself carries a certain capacity for self-regulation”, said the Commissioner, “we have to take this into account when we design a regulatory system”.

SEC Commissioner Peirce discusses regulation of crypto and decentralized finance

SEC Commissioner Hester Peirce spoke about cryptocurrency regulation in an interview with Yahoo Finance, published last week. Peirce is also known in the crypto community as a “crypto mom” for her knowledge and support of the crypto space.

He was asked if the SEC is struggling to catch up with developments in space and crypto protocols that advance and change very quickly on a daily basis.

“It is certainly difficult for a regulator to stay abreast of developments in terms of the challenge [decentralized finance] and crypto more generally, ”Peirce admitted. However, she noted:

People shouldn’t assume that the SEC can only focus on one thing. The SEC has a lot of resources and can handle a lot of things simultaneously.

“So be aware of that, and you need to ask yourself if the securities laws apply to what you do and consult with lawyers if necessary,” she recommended.

The Commissioner added: “The decentralized world is a very new world for us as we are used to dealing with large centralized intermediaries, usually large. Real decentralized projects therefore pose a challenge. Peirce warned:

I think what I’d like to warn people about is that sometimes something claims to be decentralized and isn’t, and there is in fact a centralized entity, and I think regulators will definitely look to that. centralized entity.

SEC Chairman Gary Gensler also similarly said that many platforms claiming to be decentralized are in fact centralized. He told Sen. Elizabeth Warren in September that many platforms “are decentralized only by name”, citing that “there is a user agreement”. Additionally, he said many tokens listed on cryptocurrency exchanges are in fact securities, telling Congress they need more regulation.

Peirce further explained:

Decentralized finance carries within itself a certain capacity for self-regulation. And I think we have to take that into account when we design a regulatory system.

Commenting on cryptocurrency regulation, the Commissioner said: “It baffles me that for three years now I have been asking for regulatory clarity and we cannot provide it.”

She added, “I think it’s really becoming a huge hurdle for this industry to grow in a safe way but also in a way that allows innovation to happen. And it’s a shame for me that we don’t just play the role of regulators to develop a regulatory framework.

What do you think of SEC Commissioner Hester Peirce’s comments? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

[ad_2]