DeFi projects to register with the SEC : Gary Gensler

The chairman of SEC said that many Defi projects are centralised while they are made to operate autonomously. Gary also suggested that there should be new rules for Defi projects.

When it comes to the decentralization of the crypto platforms, the first thing that comes to our mind is Defi based projects. But in actual fact we are wrong because there are many things which remain under the control of the Defi project team and they can misuse or manipulate the platform in their own way. So by considering these facts, the SEC’s chairman talked about it.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission, speaking to The Wall Street Journal on 19 August stated that Defi projects are Centralized. 

“These platforms facilitate something that might be decentralized in some aspects but highly centralized in other aspects.”

Gary also suggested that these Defi projects should be registered to the SEC authority so that The developers team or Founder of the projects can’t manipulate the project. 

On 20 August, in an interview with Fox Business, Gary stated

“These so-called decentralized finance platforms actually have a lot of centralization. There’s a group of entrepreneurs that are running these platforms. They should come in and to that extent work with us and get registered.”

This will probably be a good move by the SEC authority if they can restrict all the DeFi projects to get approval or some kind of registration to prove their project as fully decentralized. Then it will give a better result for the crypto community to choose better projects to invest in.

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