{"id":13037,"date":"2021-10-10T22:54:06","date_gmt":"2021-10-10T22:54:06","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-commissioner-true-decentralized-projects-pose-a-challenge-to-crypto-regulation\/"},"modified":"2021-10-10T22:54:06","modified_gmt":"2021-10-10T22:54:06","slug":"sec-commissioner-true-decentralized-projects-pose-a-challenge-to-crypto-regulation","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-commissioner-true-decentralized-projects-pose-a-challenge-to-crypto-regulation\/","title":{"rendered":"SEC Commissioner: True Decentralized Projects Pose a Challenge to Crypto Regulation"},"content":{"rendered":"

A commissioner with the U.S. Securities and Exchange Commission (SEC) says that true decentralized projects pose a challenge to crypto regulation. Noting that \u201cdecentralized finance carries within itself inherently some ability to self regulate,\u201d the commissioner said, \u201cwe need to take that into account as we design a regulatory system.\u201d<\/strong><\/p>\n

SEC Commissioner Peirce Discusses Crypto Regulation and Decentralized Finance<\/h2>\n

SEC Commissioner Hester Peirce talked about cryptocurrency regulation in an interview with Yahoo Finance, published last week. Peirce is also known in the crypto community as \u201ccrypto mom\u201d for her knowledge and support of the crypto space.<\/p>\n

She was asked about whether the SEC has any trouble catching up with developments in the crypto space and protocols which are advancing and changing very quickly on a daily basis.<\/p>\n

\u201cThere is certainly difficulty on the part of a regulator to stay on top of developments in defi [decentralized finance] and crypto more generally,\u201d Peirce admitted. However, she noted:<\/p>\n

People shouldn\u2019t assume that the SEC can only focus on one thing. The SEC has a lot of resources and can go after a lot of things simultaneously.<\/p>\n

\u201cSo, be aware of that, and you need to be thinking about whether the securities laws apply to what you\u2019re doing and consulting with lawyers when necessary,\u201d she recommended.<\/p>\n

The commissioner added: \u201cThe decentralized world is one that is very new to us because we are used to dealing with large, usually large, centralized intermediaries. So true decentralized projects do pose a challenge.\u201d Peirce warned:<\/p>\n

I think what I would caution people to be aware of is that sometimes something claims to be decentralized and isn\u2019t, and there is actually a centralized entity, and I think certainly regulators will be looking to that centralized entity.<\/p>\n

SEC Chairman Gary Gensler also similarly said that many platforms claiming to be decentralized were actually centralized. He told Senator Elizabeth Warren<\/a> in September that many platforms \u201care only decentralized in name only,\u201d citing that \u201cThere is a user agreement.\u201d In addition, he said many tokens listed on cryptocurrency exchanges are actually securities, telling Congress that they needed more regulation<\/a>.<\/p>\n

Peirce further explained:<\/p>\n

Decentralized finance carries within itself inherently some ability to self regulate. And I think we need to take that into account as we design a regulatory system.<\/p>\n

Commenting on cryptocurrency regulation, the commissioner said, \u201cIt is disconcerting to me that for three years now I\u2019ve been asking for regulatory clarity and we can\u2019t seem to provide any.\u201d<\/p>\n

She added: \u201cI think this is really becoming a huge barrier to this industry being able to develop in the way that\u2019s safe but also in a way that allows innovation to happen. And it\u2019s a real shame to me that we are not just taking up the mantle as regulators to develop a regulatory framework.\u201d<\/p>\n

What do you think about the comments by SEC Commissioner Hester Peirce? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, crypto exchanges, decentralized finance, decentralized systems, DeFi, Gary Gensler, hester peirce, SEC, sec defi<\/p>\n","protected":false},"excerpt":{"rendered":"

A commissioner with the U.S. Securities and Exchange Commission (SEC) says that true decentralized projects pose a challenge to crypto regulation. Noting that \u201cdecentralized finance carries within itself inherently some ability to self regulate,\u201d the commissioner said, \u201cwe need to take that into account as we design a regulatory system.\u201d SEC Commissioner Peirce Discusses Crypto…<\/p>\n","protected":false},"author":0,"featured_media":13038,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-13037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13037"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=13037"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13037\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/13038"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=13037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=13037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=13037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}