SEC Commissioner, Hester Pierce, well-known as Crypto Mom believes that the only hope for the founders of Defi is to bypass financial regulations to implement true decentralization from launch. She has reportedly warned of unrestrained “shadow-centralization” within the Defi sector.
The Commissioner of the Securities and Exchange Commission (SEC), Hester Pierce, also known as Crypto Mom in the crypto space spoke to Chris Blec, the Founder of DeFiWatch in an August 4 discussion streamed by The Defiant.
She noted in the discussion that decentralized finance and decentralized organizations are new concepts for regulators and said that:
In addition to this, she addressed the future issues that can occur if Defi founders don’t build something that they are not ready to have regulatory implications on and said:
Pierce was asked by Blec the best method for the development of decentralized protocols along with the doubt that if the founders should strive to acquire the same level of decentralization as Bitcoin.
In response to this, the SEC Commissioner said that the existing regulations are designed in such a way that any individual involved with the financial industry must come under one of the regulatory frameworks mentioned in the list of regulations. She said: