Gensler believes the DeFi sector needs to be regulated
The chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, believes that the decentralized finance (DeFi) space needs to be regulated. He revealed this during a recent interview with the Wall Street Journal.The SEC chair revealed that some of the DeFi projects fall within the purviews of the regulatory agency and therefore need to be regulated. Gensler said, “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. There’s some incentive structure for those promoters and sponsors in the middle of this.”
Gensler added that although there is no central entity in charge, DeFi projects that reward users with incentives or digital tokens fall under the regulatory supervision of the US SEC.
Gensler wants a broad regulation of the crypto space
Gary Gensler has been vocal about the need to regulate the cryptocurrency space in recent weeks. He recently stated that there is a need to regulate the DeFi space, cryptocurrency exchanges and stablecoins.The SEC chair also asked the US Congress to grant the Securities and Exchange Commission more power and resources to increase its current oversight of the cryptocurrency industry.
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