DeFi Platforms Under Scrutiny

There’s a new sheriff in town at the Securities and Exchange Commission.

Mr. Gensler is known as a regulatory “hawk” and now, per the Wall Street Journal has his eye on crypto DeFi platforms.

A DeFi (or decentralized financial) platform is a digital asset exchanges where people can trade and lend Bitcoin and other cryptocurrencies that claim to involve “no middleman setting the rules or taking fees.”

But hold on cowboy, that’s not how the new SEC Chairman sees it.

His view is that where the platforms offer digital tokens or similar incentives to participants, that may be an issuance of a “security” that could be subject to regulation.

Congress has been getting more uneasy about the wild west atmosphere of crypto trading.

The large infrastructure bill was held up for weeks over wrangling about how much to regulate certain area of the industry.

Watch for more enforcement actions to come.

https://www.wsj.com/articles/cryptos-defi-projects-arent-immune-to-regulation-secs-gensler-says-11629365401

Source: https://jeffkoeppel.wordpress.com/2021/08/21/defi-platforms-under-scrutiny/