SEC Chair Gary Gensler Concerned About DeFi, Multiple Crypto Sectors on the Radar

Sahaj  |  Aug 3, 2021

Gary Gensler, the Chair of the Securities and Exchange Commission, SEC, has clarified the was concerned about decentralized finance, Defi. He also revealed that not only Defi, multiple other sectors of the crypto industry, stablecoins, and ETFs are also on the SEC’s radar.

Gary Gensler of SEC Concerned About Defi

The Chairperson of SEC, Gary Gensler said that though he is an expert in this sector, he is not a crypto lover. 

He even claimed that he asked his staff to use all the authorities of the agency and said:

“I’ve asked the staff to use all of our authorities anywhere we can.”

Back in the month of March, it was reported that the SEC boss has urged Congress to regulate crypto exchanges during a virtual hearing.

Despite teaching an MIT course on blockchain in the past, Gary clarified that he is not neutral on crypto when it comes to the protection of investors and said:

“While I’m neutral on the technology, even intrigued—I spent three years teaching it, leaning into it—I’m not neutral about investor protection.”

Defi Could Pose Fresh Challenges for US Investors

Gary mentioned that the crypto sector poses a lot of threats and risks to the investors in the markets and challenges to the securities regulator.

He indicated the fluctuations in the market and novel products and said:

“Crypto lending platforms and so-called decentralized finance (‘DeFi’) platforms raise a number of challenges for investors and the SEC staff trying to protect them.”

On Monday, leading market data aggregators revealed the total market capitalization to be standing at $1.6 trillion after losing around ⅓ of its value in just a matter of two weeks.

Earlier, the House Financial Services Committee told Gensler that stronger regulation around crypto exchanges could help protect investors.

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